A former communications lead for Ashes of Creation has publicly stated that developers laid off from the MMORPG studio will not receive their final paychecks or owed compensation. The allegation suggests the company behind the ambitious crowdfunded game has hit severe financial trouble.
The claim indicates employees won’t get their earned wages for work already completed. This would also include any promised severance packages and accrued paid time off. The timing is especially rough since it comes shortly after the game’s Steam Early Access launch on April 11.
In the United States, withholding earned wages is illegal. Employers must pay workers for time they’ve already worked. But when a company goes bankrupt, the reality gets messier. Employees become creditors who have to file claims. They might wait months or even years to see any money, if the company has anything left to distribute.
The layoffs appear to have been sudden and large-scale. This raises questions about WARN Act compliance. The federal Worker Adjustment and Retraining Notification Act requires advance notice for mass layoffs at companies of a certain size. Violations can create additional liability for back pay during the notice period that should have been given.
Ashes of Creation has been in development for years and raised millions through Kickstarter and sales of founder packs. The game promised a massive open-world MMORPG with dynamic node systems and player-driven content. MMORPGs are notoriously expensive to develop, requiring large teams and sustained funding over multiple years.
The Steam launch was likely intended as a cash infusion. Early Access releases let developers sell the game while still building it. But if the money isn’t flowing through or refunds are eating into revenue, it can create a death spiral. Some sources claim Steam may have frozen payouts to the company, though this remains unconfirmed.
For Kickstarter backers hoping for refunds, the outlook is grim. Crowdfunding campaigns are structured as investments in a project, not retail purchases. Backers fund development with the understanding that projects can fail. Getting money back through Kickstarter after years of development is nearly impossible.
Laid-off employees have options, but they’re all difficult. They can file wage claims with their state labor board. They can hire lawyers to pursue the company and potentially its leadership personally. In some states like California, company officers can be held personally liable for unpaid wages. But winning a judgment and actually collecting money are two different things.
If the company truly has no assets left, even successful legal action may yield nothing. Former game developers who’ve been through studio bankruptcies report waiting years for partial payments. The process involves joining a long line of creditors hoping to get something from whatever remains.
