Red Fly lays off 30

Austin-based studio behind Mushroom Men, Wii versions of Thor, Ghostbusters cuts staff after cancellation of planned project.


Last month, Austin-based Red Fly Studio celebrated the launch of the Wii version of Sega's Thor: God of Thunder. This week, the developer is marking a more somber milestone, as the company today confirmed it has laid off dozens of employees.

Red Fly's Wii version of Thor debuted early last month.
Red Fly's Wii version of Thor debuted early last month.

"Red Fly was in the unfortunate position of laying off around 30 people on Wednesday June 22," studio CEO Dan Borth told GameSpot. "The reduction of staff was a response to a large high-profile project that was, to our surprise, reevaluated and then canceled.

"Red Fly has been an agile, passionate company from day one, and while this news was very difficult, we've made a concentrated effort to reinvest in ourselves and the way we want to make games. Currently, we are all very excited about our new opportunities and working diligently to make them a reality."

Red Fly may be best known for 2008's original Mushroom Men games on the Wii and DS, but the studio has produced a string of licensed titles for the Wii since then. Its highest-profile games have been the Nintendo console versions of Ghostbusters: The Video Game, Star Wars: The Force Unleashed II, and Thor: God of Thunder, all of which received higher review scores from GameSpot than their Xbox 360 and PlayStation 3 counterparts.

Please use a html5 video capable browser to watch videos.
This video has an invalid file format.
Sorry, but you can't access this content!
Please enter your date of birth to view this video

By clicking 'enter', you agree to GameSpot's
Terms of Use and Privacy Policy

Got a news tip or want to contact us directly? Email

Join the conversation
There are 14 comments about this story
14 Comments  RefreshSorted By 
GameSpot has a zero tolerance policy when it comes to toxic conduct in comments. Any abusive, racist, sexist, threatening, bullying, vulgar, and otherwise objectionable behavior will result in moderation and/or account termination. Please keep your discussion civil.

Avatar image for redskinStu

"all of which received higher review scores from GameSpot than their Xbox 360 and PlayStation 3 counterparts. " Surprise, surprise, Gamespot, Nintendo's number 1 marketing machine.

Avatar image for suprsolider

@-TheWormsMan- I disagree with Ghostbusters on the Wii being better than the HD counterpart. Sure it was a good game, and I have it along with the PS3 version. But compare the Wii version's catching ghosts who even on the toughest difficulty barely put up a struggle to capture, the PS3 version they put up a hell of a fight. I got the Wii version first as a birthday gift when it was new, and I was disappointed not by the graphics since I knew what to expect, but how easy they made the game compared to the HD version which I got about a Week later.

Avatar image for spoonybard-hahs

@ heroesfan261 History actually proves how terrible that idea is. There used to be a company called LJN that did precisely that on the NES. Every single game that company released was a tie-in, from Terminator to X-Men. Go to and click on the AVGN tab. A good portion of the the games the Angry Video Game Nerd has reviewed have been LJN abortions.

Avatar image for servb0ts

So Red Fly turns into White Flag?

Avatar image for berzerk0912

There's a burger joint called Red Fly.

Avatar image for emptyjuicebox

That's too bad. Mushroom Men was an excellent game and one of the few third-party Wii games worth buying.

Avatar image for -TheWormsMan-

That is a shame. Red Fly developed ports of Ghostbusters and Force Unleashed 2 for Wii that were actually BETTER than their HD counterparts on 360 and PS3.

Avatar image for heroesfan261

I think someone should just form a studio exclusively for movie tie-ins and be really good at it, that way, we could get some good movie tie-in games. And movie companys need to realize that it takes more time to make a game than it does a movie with small studios. I don't care if these movie games just rip off of god of war or zelda or anything for god's sake JUST MAKE THEM GOOD,

Avatar image for Iridescent406

It's never good news to hear people getting laid off from their work. Hope they land on their feet.

Avatar image for Iridescent406

[This message was deleted at the request of the original poster]

Avatar image for pszone

Last year was sega Iron man studio went down under. Know Thor flop leaveing pp to leave. Aslo another flim game from sega will come out soon. Face it Sega your rubish makeing movie games they still havent learn there lesson since sega to blame for makeing flim games still.

Avatar image for timmy00

That's a shame. Things like this are never good. Yeah they made Thor but at least their version was playable.

Avatar image for kris9031998

They deserve it for making Thor.....

Avatar image for Sendmn23

and yet day after day... year after year the used market shows increases after increases... and people say the used game market is nothing like "piracy" when in fact the out come is the same... the devs don't see a dime of it...