Solana game developer Automata (ATMTA) to undergo significant headcount reduction
Automata, the game developer behind Solana-based game Star Atlas, has announced a major restructuring that will involve a significant reduction in staff. The team will now consist of just 45 members, down from 235 in late 2022. The restructuring aims to preserve the company’s ability to develop Star Atlas, with a shift in focus towards delivering SAGE and the newly announced Crew Mobile App. However, the development of the software development kit (SDK) for the game will slow down significantly. The announcement also highlighted financial challenges, including a significant loss in value of the in-game token Atlas and financial losses from the collapse of FTX. The project’s runway is now greatly reduced, and the likelihood of closing an equity and debt financing deal is low.
Key Points:
– Automata, the game developer behind Star Atlas, will undergo a significant headcount reduction, with the team size decreasing from 235 to 45.
– The focus will shift towards delivering SAGE and the newly announced Crew Mobile App, while the development of the game’s SDK will slow down.
– Financial challenges include a loss in value of the in-game token Atlas and losses from the collapse of FTX.
– The project’s runway is greatly reduced, and the likelihood of closing a financing deal is low.
– Solana blockchain has seen all-time high usage and 100% uptime in Q2.
Hot Take:
The significant headcount reduction at Automata reflects the challenges faced by the company in developing the Star Atlas game. Financial setbacks and the need for a shift in business strategy have led to a reduced team size and slower development of the game’s SDK. However, despite these challenges, Solana blockchain continues to thrive with high usage and reliability. It remains to be seen how Automata will navigate these obstacles and whether it can successfully deliver on its game development goals.
Coinan Porter stands as a notable crypto analyst, accomplished researcher, and adept editor, carving a significant niche in the realm of cryptocurrency. As a skilled crypto analyst and researcher, Coinan’s insights delve deep into the intricacies of digital assets, resonating with a wide audience. His analytical prowess is complemented by his editorial finesse, allowing him to transform complex crypto information into digestible formats. Coinan’s contributions serve as a valuable resource for both seasoned enthusiasts and newcomers, guiding them through the dynamic landscape of cryptocurrencies with well-researched perspectives. With meticulous attention to detail, he empowers informed decision-making in the ever-evolving crypto sphere.
