Ashes of Creation faces collapse weeks after Steam launch as founder resigns and layoffs begin

The fantasy MMORPG Ashes of Creation has been thrown into turmoil only 52 days after its Steam Early Access release, with senior resignations and mass layoffs casting doubt over the future of the long-running project.

Concerns first emerged when multiple Intrepid Studios employees updated their LinkedIn profiles to show they were seeking new work.

Director of Communications and Marketing Margaret Krohn acknowledged the situation in a brief post, writing, “As for how this all ended… I don’t really have the words. It wasn’t what I expected. But I’m holding onto the good because there was so much of it.”

Founder and Creative Director Steven Sharif later addressed the community on the official Discord server, confirming he had resigned.

“Control of the company shifted away from me, and the Board began directing actions that I could not ethically agree with or carry out. As a result, I chose to resign in protest,” he said.

Sharif added that much of the senior leadership team followed him out and that the Board subsequently issued WARN Act notices to begin large-scale layoffs.

Public records show the company’s board lists Sharif and chief financial officer John Moore, raising questions about the internal dispute.

Sharif said he could not comment further because of legal matters but stressed that staff had “acted in good faith and deserved better than the uncertainty they are now facing.”

Ashes of Creation was announced in 2016 and raised more than $3.2 million on Kickstarter in 2017. Development continued for years, including a move from Unreal Engine 4 to Unreal Engine 5 in 2021.

The decision to release the game on Steam in an alpha state last month proved divisive, and user reception has remained mixed.

Steam data shows a peak of 31,800 concurrent players at launch, with numbers declining since. Estimates suggest between 220,000 and 320,000 copies were sold, generating roughly $11 million to $16 million in revenue before platform fees.

Backers have pointed to a Kickstarter pledge promising refunds if the game failed to launch, a commitment that is now being debated following the Early Access release.