Fishlabs Has Not Used Any Government Funding and Is Commenting on the Status Quo

A media report sheds light on the cancellation of Project Black at Fishlabs, describes possible game pitches, and addresses lay-offs as the Embracer Group restructures. GamesMarkt talks to Fishlabs about the report and what happened to the German government funding.

During the restructuring of the Embracer Group in November 2023, jobs were cut at the Plaion subsidiary Fishlabs in Hamburg; Plaion itself is a business unit of Embracer. Due to the refusal to approve and finance an unannounced game, 50 people were affected at Fishlabs (article in German). At the time, the company said it employed more than 100 people. Important fact: In March 2023, Fishlabs received a 5.5 million Euros funding commitment from the German government's computer games funding programme for "Project Black", the highest amount ever awarded to this date. A background report by Rock Paper Shotgun (RPS), based on interviews with those involved, sheds light on what may have been going on behind the scenes at Fishlabs, although RPS has not received any official statements from Fishlabs, Plaion or Embracer.

So GamesMarkt asked Plaion and Fishlabs to comment on the RPS report. Stephan Beier, Director Studio Relations at Plaion and Managing Director at Fishlabs, replied that the article "obviously reflects the subjective view of one or more former Fishlabs employees". However, due to NDAs, he could not comment on specific aspects. Nevertheless, Beier made it clear that the German government funding was not claimed even after the projects were merged. Beier: "Unfortunately, we were not able to realise the merged project either, so we withdrew the application for funding. Fishlabs has not received any funding from the BMWK".

He describes the studio's current situation as follows: "We are happy that Fishlabs has stabilised at a smaller level despite the cuts. The studio is currently working on some previously announced projects (e.g. Goat Simulator 3) as well as some unannounced projects. As Fishlabs' portfolio expands, a number of positions are currently vacant."

So what was the Rock Paper Shotgun article about? The following is a brief summary that does not go into any further detail. Fishlabs, known for Galaxy On Fire, has been part of Koch Media, now Plaion, since 2013. The studio launched Chorus in 2021, which was profitable according to the report, but did not meet the expectations of Embracer's management. Nevertheless, the studio will continue to focus on PC and console games. As of June 2023, it had two projects in development. The report said: "Project White was the "side hustle", a team devoted to pitching games based on other intellectual properties that Embracer owned. Project Black - the "shining star" - was an original game which sources say began development in 2021. In-house projects aside, Fishlabs also operated a cross-development team taking on work for other studios, such as Powerwash Simulator developer Futurlab."

Project Black underwent several changes. It is said to be a new IP, a 3rd person Metroidvania in an open world. The game's development is described as "troubled", as the studio's flat hierarchies meant that the game lacked cohesion. Despite this, the title was progressing, but not fast enough for Embracer, so it was considered too risky during the restructuring process, especially as it was not based on an Embracer IP. The project was cancelled. The team was split between the cross-dev team and Project White, and a dozen people had to leave.

Fishlabs merged the two projects and managed to keep the funding. Pitches were then made to the publisher for a game in the Lord of the Rings universe, a sequel to Chorus and, most promisingly, a new Red Faction game. It should be noted that this was never officially confirmed. According to the report, morale in the studio was high, the working culture vibrant and the projects well managed by the bosses. Despite minor conflicts that are inevitable in such a large team, work on the project progressed smoothly. "Plaion's immediate feedback was positive, and sources say there was wide confidence that the game would be greenlit. But it wasn't to last", RPS wrotes. "During the week of 20th November, there was another internal vote on the Red Faction project's future. The vote was split 50-50, which meant that the Red Faction game was immediately cancelled." This led to a large wave of lay-offs, which also placed a heavy emotional burden on the company's management. RPS sources explicitly praise Studio Development Director Tobias Severin and Managing Director Stephan Beier, who are said to have fought hard for the employees and the preservation of jobs. RPS only held talks with former employees in the winter of 2023 and spring of 2024.

The report also states that Studio Development Director Tobias Severin and Studio Operations Director / Managing Director Stephan Beier would step down. Tobias Severin left Fishlabs in May 2024 (he now works for Sandbox Interactive), while Stephan Beier join Plaion in March 2024 as Studio Relations Director, but still acts as the Managing Director of Fishlabs.

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