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Little Nightmares 3 developer Supermassive Games announces layoffs — while another horror game is delayed

Directive 8020 key art, showing a woman with a monster reflecting in her helmet
Directive 8020 was slated to launch in October, but will now be arriving in 2026. (Image credit: Supermassive Games)

It’s another day ending in “y,” meaning there are more layoffs across the gaming industry.

U.K. horror title developer Supermassive Games shared on Tuesday via X (Twitter) that the company was beginning a consultation process that will likely end with 36 employees being let go.

“This decision was not made lightly, and we know this will be an incredibly difficult time for everyone. Our absolute priority will be to offer full support to all those affected,” the statement says.

This wave of cuts comes as Supermassive Games already laid off 90 employees back in February 2024, which was at the time about 26% of the studio’s total workforce.

Directive 8020 is delayed, while Little Nightmares 3 isn’t

Little Nightmares 3 key art

Little Nightmares 3 can be played in two-player co-op. (Image credit: Bandai Namco)

In addition to the layoffs, Supermassive Games shared that its upcoming science-fiction horror game Directive 8020 is being delayed.

While the title was previously slated to launch across Xbox Series X|S, Windows PC, and PlayStation 5 on Oct. 2, 2025, the game will now arrive at some point in the first half of 2026.

“The response to this game has been fantastic, and this additional time will help us deliver the very best experience for our fans. We’re deeply grateful for the patience and support of our community,” the statement continues.

As the fifth game in The Dark Pictures Anthology, Directive 8020 follows a team of astronauts searching for a new planet. After a crash-landing, they come in contact with a horrifying lifeform that can take monstrous forms while imitating the humans it encounters.

In addition to Directive 8020, Supermassive Games is currently working on Little Nightmares 3, a sequel to the two horror titles developed by Tarsier Studios. Little Nightmares 3 is not being delayed, and is still slated to launch on Oct. 9, 2025, across Xbox Series X|S, Windows PC, and PlayStation 5.

Like prior Little Nightmares games, Little Nightmares 3 focuses on players guiding a child through a massive, desolate world. Unlike its predecessors, Little Nightmares 3 supports co-op, letting two players go through the experience together.

Cernan hiding in Directive 8020

Directive 8020 challenges you on who you can trust. (Image credit: Supermassive Games)

I played a demo of Directive 8020 at Summer Game Fest 2025 before talking to the game director, Will Doyle. The demo was pretty short, but I was impressed with the upgraded visual fidelity and stealth segments the game has compared to prior titles in The Dark Pictures Anthology, and the science-fiction setting appealed to my love of films like Alien and The Thing.

I’ve enjoyed playing prior games in the series, but I’m still hopeful that this one can go a step beyond and reach the heights of Supermassive’s Until Dawn, a 2015 game that remains the studio’s best work.

While it’s obviously disappointing to have to wait longer, I’m still looking forward to the game’s launch.

Hopefully, we won’t be waiting too long to get a new release. In the meantime, my thoughts are with the employees affected by these layoffs, and I hope they can all find new jobs in the near future.

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Samuel Tolbert is a freelance writer covering gaming news, previews, reviews, interviews and different aspects of the gaming industry, specifically focusing on Xbox and PC gaming on Windows Central. You can find him on Bluesky ‪@samueltolbert.bsky.social‬.

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