Highlights

  • Velan Studios, known for Mario Kart Live: Home Circuit, sent layoff notices to a third of its staff due to a canceled project.
  • The company, founded by the Bala brothers in 2016, is reorganizing and trying to rescind as many layoff notifications as possible.
  • Velan Studios promises to support affected employees and focus on current games while securing new partnerships to minimize the impact.

Velan Studios, an American video game studio that previously worked on Mario Kart Live: Home Circuit, has given layoff notices to a third of its staff, the company has revealed. The developer has worked with other big companies and brands in the past, such as Electronic Arts and Hot Wheels.

Velan Studios was founded in late 2016 by brothers Guha Bala and Karthik Bala, both of whom had previously founded and worked at Vicarious Visions - now known as Blizzard Albany. The New York-based developer's debut title was Mario Kart Live: Home Circuit, a mixed reality racing title for the Nintendo Switch that was launched in 2020, and it has released two other games since then. The indie game company is now going through a rough patch that will likely result in the downsizing of its staff.

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In a statement, Velan Studios revealed that it has sent layoff notices to 46 of its 121 team members as part of a reorganization effort. An unnamed external partner suddenly canceled one of Velan Studios' major projects, which has made it difficult for the latter to maintain its current size, according to the company. This development follows several recent layoffs in the video game industry, including those from big names like EA and Sony.

Velan Studios hopes to rescind as many of the layoff notifications that it sent out as possible, the statement signed by the Guha brothers read. Meanwhile, the company, which released the well-liked Hot Wheels: Rift Rally augmented reality game a little over a year ago, promised to do its best to support any employees who might be affected by the reorganization that is still currently in its early stages.

Games Developed by Velan Studios

  • Mario Kart Live: Home Circuit (2020)
  • Knockout City (2021)
  • Hot Wheels: Rift Rally (2023)

As for its projects, Velan Studios said it would double down on its current games, some of which are scheduled to release this year. The company is also securing new partnerships to minimize the impact of its reorganization. In addition to working with Nintendo on Mario Kart Live: Home Circuit, Velan Studios also partnered with EA in the past to make Knockout City, a competitive online title that tried to reimagine dodgeball. While it was well received, Knockout City was shut down on June 6, 2023, as Velan Studios found it difficult to keep the game running.

All three of Velan Studios' releases have been praised for being innovative game experiences. Mario Kart Live: Home Circuit, which is the latest entry in Nintendo's long-running Mario Kart franchise, received nominations from The Game Awards, D.I.C.E. Awards, and the Academy of Interactive Arts & Sciences. Even years after its release, players have found new ways to play Mario Kart Live: Home Circuit.