Versus Evil, a prominent indie game publisher known for titles such as The Banner Saga and Pillars of Eternity, announced on Friday that it would be closing its doors after a decade in business. The unfortunate news comes just days after a significant investment from Atari in Versus Evil's parent company, tinyBuild.

In a statement posted on its X account, Versus Evil expressed sadness about the closure, stating, "Today is a sad day. After 10 wonderful years, Versus Evil is shutting its doors. We've loved bringing you the best indie games we could find and sharing so many happy memories with you all, our amazing community! From the bottom of our hearts, THANK YOU for everything!"

Lance James, the former head of production at Versus Evil, also took to social media to share the news, revealing that the entire Versus Evil team had been unexpectedly laid off. He emphasized that this decision was not made by Versus Evil but did not disclose the reason behind the closure. James also shared posts from other former Versus Evil employees who were now seeking new job opportunities.

Reports suggest that the closure of Versus Evil has affected thirteen employees, according to a LinkedIn post by Francis Fincke, the company's former director of product strategy.

The shutdown of Versus Evil follows recent difficulties faced by tinyBuild, which reported lower-than-expected revenue and implemented cost-cutting measures, including layoffs. On its investor website, tinyBuild, which now has over 400 employees worldwide, mentioned that three out of four games under the Versus Evil label had been delayed from 2023 to 2024. It was also revealed that tinyBuild reached a $3.5 million settlement with Versus Evil founder Steve Escalante, Lance James, and Stall Proof LLC, the publisher's former owner before tinyBuild's acquisition in 2021. Allegedly, the settlement was related to capital contributions that were not made in a timely manner during fiscal years 2022 and 2023.

Atari's $2 million investment in tinyBuild was part of the company's push to raise $14 million in capital by issuing new shares.

The closure of Versus Evil adds to the bleak year for employees in the video game industry, as an estimated 9,000 individuals have lost their jobs due to severe cutbacks across various tech industries.

While Versus Evil's closure marks the end of an era for the popular indie games publisher, the industry will undoubtedly remember the memorable experiences and contributions it provided over its ten years of operation.