Luna Abyss, a moody bullet‑hell title that channels the spirit of Metroid Prime, Returnal, and other sharp shooters, has managed to punch well above its weight class, earning glowing reviews and a solid 86‑percent approval rating on Steam.
Yet, despite its critical acclaim, the studio behind the day‑and‑date launch on Game Pass is already shutting its doors, less than a month after the game hit the market.
Kwalee Labs’ CEO Hollie Emery expressed gratitude for the support from both the industry and journalists, noting that the release had become a career highlight for the team. “We’re enamored by the love and support it received both by our industry and critically by journalists and media,” she wrote on LinkedIn on June 16 (via Game Informer). “Whilst we faced many challenges along the way, it has been the highlight of our careers – and we are incredibly proud that it has finally seen the light of day (thank you to everyone who believed in us!).”
Emery went on to announce that, as of the previous day, the entire team had been made redundant—a decision made entirely outside the company’s control. “As a result, the entire team are available for work as of today…I am so proud of what we were able to achieve with Luna Abyss, for such a small team, in a genre that is incredibly difficult to hit a good review score in!” she added.
The title debuted on May 21 for $30 on Steam and consoles, while existing Game Pass subscribers could play it for free on PC and Xbox Series X/S. Polygon dubbed it “quietly one of the best shooters of 2026,” and a dedicated community of players has kept the buzz alive on Steam, where Luna Abyss currently boasts an 80‑plus Metacritic score.
Despite a solid reception for the indie studio’s debut and a Game Pass partnership with Microsoft, the team has yet to secure a follow‑up horror shooter. This outcome underscores how even well‑received, distinctive titles with Game Pass marketing support can still fail to gain traction in a crowded market.
❓ Frequently Asked Questions (FAQ)
Why did Kwalee Labs shut down shortly after the launch of Luna Abyss?
Kwalee Labs announced that the studio was closed due to circumstances beyond its control, leading to the redundancy of the entire team. The decision was not tied to the game's performance or reception but rather to external factors that forced the company to cease operations.
What happened to the developers who worked on Luna Abyss?
The entire team was made redundant, meaning they were released from their positions. The studio’s CEO, Hollie Emery, stated that all team members are now available for new work opportunities.
Will Luna Abyss still be available on Game Pass after the studio’s closure?
Yes, Luna Abyss remains available on Game Pass as a day‑and‑date launch title. The shutdown of the studio does not affect the game's distribution or availability on the platform.
News Source: Kotaku
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