In a recent and unexpected move, Zynga has officially announced the closure of Echtra Games, the development studio best known for *Torchlight 3*. The San Francisco-based team had been operating since its acquisition by Zynga in 2021, during which time it was reportedly working on an unannounced cross-platform action RPG. According to IGN, the studio will cease operations by the end of the month. While no exact number of affected employees has been released, LinkedIn data suggests around 61 individuals were employed at the studio.

Zynga released the following official statement regarding the decision:

> Zynga has made the difficult decision to cease operations at its Echtra studio, ending development on future titles and reducing roles. This decision is part of a strategic realignment of the company's resources and priorities. We will work closely with impacted employees so they are treated with the utmost respect and consideration as we navigate this difficult process.

Echtra Games was founded by Max Schaefer, one of the original co-founders of Runic Games—the studio behind the *Torchlight* franchise—and also a key figure in the creation of *Diablo* alongside his time at Blizzard North. After leaving Runic Games, Schaefer launched Echtra under the financial backing of Perfect World, initially aiming to develop a *Torchlight* MMO. Over time, the project evolved into what would later become *Torchlight Frontiers*, and eventually *Torchlight 3*.

In 2021, Zynga acquired Echtra Games, allowing Perfect World to retain control of *Torchlight 3*. Under Zynga’s ownership, Echtra began collaborating with NaturalMotion—known for *CSR Racing* and *Star Wars: Hunters*—on a new cross-platform RPG. However, the game never reached an official announcement or public reveal.

While the specific reasons for Echtra’s shutdown remain unclear, this news arrives just three months after Zynga confirmed the upcoming closure of *Star Wars: Hunters*, another title developed by NaturalMotion. That decision was made only nine months after the game’s launch. Additionally, Zynga operates under Take-Two Interactive—the publisher behind *Grand Theft Auto*—which recently went through significant internal restructuring, including the gradual disbanding and sale of its Private Division label earlier this year. Around a year ago, Take-Two also carried out layoffs affecting approximately 5% of its global workforce and canceled several unreleased projects.