Tequila Works, one of the biggest names in video game development in Spain, has entered bankruptcy proceedings. This was announced by the Madrid studio, founded in 2009 and responsible for hits such as Deadlight and Rhymethrough a statement. As stated on the GamesIndustry website, the beginning of this legal process is attributed to the prolonged crisis situation that the video game sector has been experiencing in recent years.
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The new CEO of Tequila Works, Térence Mosca, has assumed this responsibility after the studio’s founders, Raúl Rubio and Luz Sancho, have left their positions in recent days. In his statement, Mosca stated that he is “proud of the team’s achievements,” but that “prolonged market conditions” have led the company to have to declare insolvency.
“We are doing everything we can to provide support and guidance to our teams during this difficult time,” Mosca states in the briefing note.
Image of ‘Song of Nunu’, the latest video game developed by Tequila Works in collaboration with Riot Games
The last game published by the studio was Song of Nunua development in collaboration with Riot Games, the creators of the successful League of Legends, and which in turn is owned by the entertainment giant Tencent.
As you may have known The VanguardTequila Works was currently working on two projects financed by this company, but its recent cancellation has caused the studio to enter an unsustainable financial situation.
Already at the beginning of last October, Tequila Works announced through a publication on LinkedIn the dismissal of several employees and the cancellation of one of those not yet announced projects. The non-continuity of the second project has been the cause of the precipitation of events.
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The difficulties that Tequila Works has had to face, and which have ended with the closure of the studio’s doors, are very similar to the situation that occurred last March with the veteran Barcelona studio Novarama, which also announced the closure after receiving a major investment from Tencent. Also in this case, the cancellation of the project they were working on caused the studio to close.
Tequila Works’ ‘Gylt’ was the first exclusive title for the failed Google Stadia cloud gaming service
The news of the closure of Tequila Works is another blow for the video game industry in Spain, as it affects one of the studios that has achieved some of the most successful titles developed in this country. Without going any further, according to data from the Devuego portal, Deadligh and Rhymeare the two best-selling Spanish games in history, with 4.9 and 4 million units sold respectively.
Layoffs and study closures
Global crisis in the video game sector
The video game sector is currently going through a major crisis internationally. Market saturation, caused by a large supply of games, is one of the main causes, but there is more. We must also add the decreasing purchasing power of the players, the capacity of the big titles, such as Fortniteto retain users and the erratic planning of many companies during the pandemic era – in which video game consumption skyrocketed.
This 2024, the video game industry will already accumulate more than 13,000 layoffs and dozens of studio closures, although the most notable cases have been those of the video game divisions of Microsoft and Sony, which have laid off 1,900 and 900 so far this year. workers, respectively.
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