Hard blow for Splash Damage who cancels Transformers Reactivate and has to lay off | Xbox

While the year 2024 was a real massacre for video game workers with thousands of layoffs across the industry, 2025 unfortunately seems to follow the same trend, since we learned today that Splash Damage is restructuring.

Transformers Reactivate is canceled

In a message published on Twitter, the studio indicates that it has made the decision to end development of Transformers Reactivate in order to refocus its efforts on other projects.

Today we have some very difficult news to share, the decision has been made to end development on Transformers: Reactivate. This means that we will reduce our activities to refocus our efforts on other projects.

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We want to take a moment to thank the team who worked on Transformers for their dedication and passion. Hasbro has been an incredible and supportive partner throughout the project, and we look forward to working with them again. To the many fans, your enthusiasm and support have allowed us to continue.

Splash Damage says this is a difficult time for the studio, and the move means a number of positions are at risk of being cut.

The company’s focus now is to do everything it can to help affected employees, while it pledges to “take care of those left behind”, with the aim of “building a Splash Damage stronger for the future.”

This decision was not taken lightly and this is a difficult time for the studio and its staff. While it’s painful not to be able to see the game through to release, having to say goodbye to friends and colleagues is even more painful. We are now focused on doing everything we can to help them through this difficult time, just as we are committed to caring for those who will remain with us to build a stronger Splash Damage for the future.

Announced a little over two years ago now at the Game Awards, Transformers Reactivate was to be a cooperative action game supposed to offer players a whole new story in the Transformers universe.

The title will therefore never see the light of day and we now hope that the studio and the developers affected by this restructuring will be able to bounce back quickly.