Zynga has permanently closed Echtra Games, the studio responsible for Torchlight 3 that had been developing an undisclosed cross-platform action RPG since its acquisition four years ago.
IGN has verified that the San Francisco-based studio will cease operations by month's end. While exact figures remain unclear, LinkedIn shows 61 current employees associated with the studio.
Zynga provided this official statement to IGN:
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 established by Max Schaefer, co-founder of Torchlight developer Runic Games and former Blizzard North co-founder who helped create the Diablo franchise. Schaefer departed Runic following his colleagues' exit and launched Echtra with Perfect World's backing to develop a Torchlight MMO. The project evolved through multiple iterations, initially as Torchlight Frontiers before becoming Torchlight 3. Following Zynga's 2021 acquisition of Echtra, Perfect World retained the Torchlight IP while the studio began developing an unannounced cross-platform RPG alongside NaturalMotion, known for CSR Racing and Star Wars: Hunters.
The studio's final project remained undisclosed before its closure. This shutdown follows Zynga's recent decision to sunset NaturalMotion's Star Wars: Hunters just nine months post-launch, announced three months prior. Notably, Zynga operates under Take-Two Interactive (publisher of Grand Theft Auto), which recently restructured by divesting its Private Division label earlier this year. Take-Two also reduced its workforce by approximately 5% last year while canceling several projects.