Ashes of Creation Canceled: Intrepid Studios Shuts Down Amid Leadership Turmoil and Layoffs

Intrepid Studios has shuttered operations on the long-awaited MMORPG Ashes of Creation, with reports confirming mass layoffs and the resignation of founder Steven Sharif just weeks after the game’s early access launch on Steam.

Here’s the TL;DR…

• Ashes of Creation, a Kickstarter-funded MMO that raised over $3 million in 2017, entered early access in December 2025 but now faces an abrupt end.

• Creative director and CEO Steven Sharif resigned on January 31, 2026, citing ethical disputes with the board.

• The studio issued WARN Act notices for full layoffs starting February 2, 2026, leaving the game’s future uncertain despite servers still being online.

• No official cancellation announcement has come from Intrepid, but employee posts on LinkedIn and forums indicate development has halted.

• Players express frustration over unfulfilled promises, with Steam reviews turning negative amid calls for refunds.

What Led to the Sudden Shutdown of Intrepid Studios?

Steven Sharif stepped down from his roles at Intrepid Studios on January 31, 2026, after clashing with the board over what he described as unethical decisions.

The move came only days after a January 29 director’s letter on the official site assured players of upcoming fixes and a February 13 development update.

By February 2, however, WARN Act filings signaled the layoff of all employees due to payroll shortfalls, effectively closing the studio.

How Did Ashes of Creation Reach Early Access Before Collapsing?

The game surprised fans with a Steam early access release in December 2025, following years of alpha testing and a 2017 Kickstarter that drew nearly 20,000 backers.

Development spanned over a decade, with Intrepid promising an ambitious open-world MMO featuring dynamic node systems, player-driven economies, and large-scale PvP.

Despite the hype, the launch version arrived incomplete—missing key features and plagued by bugs—which fueled player backlash.

Is Ashes of Creation Still Playable After the Studio Closure?

Servers for the early access build remain active as of February 3, 2026, allowing current owners to log in, but no maintenance or updates are confirmed moving forward.

Steam has reportedly begun investigating the situation amid refund requests, with the game’s review score dropping to “Mostly Negative” due to complaints labeling it a “scam” or “cash grab.”

Without a team in place, long-term support appears unlikely.

What Role Did Funding Issues Play in the Game’s Demise?

Overambition and financial strains appear central to the collapse.

The project ballooned beyond its initial scope without securing enough ongoing revenue, and early access sales reportedly fell short of expectations.

These shortfalls exacerbated debts and prompted board-level intervention.

Sharif’s resignation highlighted tensions between creative vision and investor demands—a recurring risk in crowdfunded development.

How Are Players and Backers Reacting to the News?

Community forums and social media are filled with disappointment and anger.

Many who invested in alpha keys or Kickstarter pledges feel blindsided by the sudden halt.

Some players point to warning signs such as delayed features and internal layoffs in January 2026, which cast doubt on a full release.

Speculation now circulates about the IP being sold or outsourced, though nothing has been confirmed.

Could Ashes of Creation Be Revived Under New Management?

While the studio’s closure marks a major setback, the game’s intellectual property could theoretically be transferred if investors seek to recoup losses.

Past examples of crowdfunded MMOs relaunching offer slim hope, but experts note the difficulty of restarting such a complex project without its original team.

The February 13 update stream remains listed on the calendar, though its likelihood is now unclear.

What Does This Mean for the MMO Genre in 2026?

The collapse of Ashes of Creation joins a growing list of high-profile MMO failures.

It underscores the risks of long development cycles in a market dominated by entrenched titles like World of Warcraft and Final Fantasy XIV.

For crowdfunded projects, the lesson is stark: transparency, sustainable scope, and realistic timelines are essential to maintaining trust.

As players shift attention to upcoming releases, scrutiny of early access models is likely to intensify.

The shutdown of Intrepid Studios leaves Ashes of Creation’s ambitious vision unrealized, serving as a cautionary tale about the fragile balance between innovation and sustainability.

Players now face uncertainty over refunds and continued access, while the industry reflects on yet another reminder that even well-funded dreams can collapse under pressure.

For backers, the takeaway is clear: support cautiously—and demand visible progress.

Hat Tips

• PC Gamer / 2 days after promising it was still ‘worthy of your investment,’ the most successful Kickstarter MMO ever was canceled and its team laid off / February 3, 2026

• Game Informer / Report: Ashes Of Creation Developer Intrepid Studios Shuts Down Weeks After The MMO’s Early Access Launch / February 2, 2026

• IGN / Newly-Released MMO Ashes of Creation Left in Tatters as Senior Team Quits and Management Issues Layoff Warning — and Now Steam Is Reportedly Investigating / February 3, 2026

• FextraLife / Ashes of Creation’s Future is in Doubt After Developer Collapse / February 3, 2026

• Game Developer / Report: Ashes of Creation developer Intrepid Studios shuts down / February 2, 2026

• Blizzard Forums / Ashes of Creation is Officially Done / February 1, 2026

• Steam Community / Until there is an OFFICIAL statement declaring Ashes of Creation canceled… / February 3, 2026

• Ashes of Creation Official Site / A Director’s Letter to the Citizens of Verra / January 29, 2026

Article compiled by Newsroom Staff on February 03, 2026 and was fact-checked by Editorial before publication.