Night Street Games now has only 13 employees left.
Last Flag
The layoffs at Night Street Games were first reported on LinkedIn by the studio's executive producer, Jonathan Jelinek. In his post, he explained that the recently released Last Flag earned less than expected, leading management to decide on the layoffs.
Later, an official representative of Night Street Games confirmed Jelinek's words in a comment to the GamesBeat portal, adding that the studio would assist those affected in finding new jobs.
The number of employees at Night Street Games before the layoffs is unknown. According to the studio's LinkedIn account, there were about 25 people, suggesting that potentially half the team was laid off.
Night Street Games was founded in 2020 by Imagine Dragons' frontman Dan Reynolds along with his brother Mac Reynolds. On April 14, 2026, the studio released its first game for PC—a team-based capture-the-flag shooter called Last Flag. Although the game received 74% "mostly positive" reviews on Steam, it failed to attract a large audience: at its peak, only 558 people were playing the Steam version of the title simultaneously. As a result, just three weeks after the release, Night Street Games announced plans to cease support for the shooter. Given these results, the layoffs at the studio were a fairly expected outcome.