Last Flag Studio Cuts Staff Amid Struggles to Find an Audience

The journey of Last Flag, the capture-the-flag shooter from Night Street Games, has taken a dramatic turn. Initially gaining attention due to its high-profile founders—Mac Reynolds, manager of Imagine Dragons, and his brother Dan Reynolds, the band’s lead singer—the title promised a fresh take on the genre. PC Gamer editor Tyler Wilde, a seasoned critic of the shooter genre, noted in 2025 that he "found a lot to like about it," praising its mechanics and design.

However, despite the star power behind its creation, the game has struggled to attract a sustainable player base. In April, the studio announced plans to make the game free-to-play every weekend leading up to its first major update. Just one week later, those plans were scrapped. Night Street Games cited insufficient player numbers as the primary reason, stating they could not support further development beyond upcoming patches.

Executive Producer Confirms Layoffs and Studio Restructuring

The struggles have now led to significant internal changes. Last week, executive producer Jonathan Jelinek confirmed a "reduction in our team," a move that was widely anticipated given the game's previous struggles. In a detailed statement provided to Game Developer, Mac Reynolds, CEO of Night Street Games, revealed that approximately a dozen employees have been let go.

Reynolds acknowledged the difficulty of the decision, noting that "game development is an inherently risky business." He emphasized the team's dedication to the project: "Our team poured everything into bringing Last Flag to life, and I'm proud of what we built together." Despite the layoffs, the studio remains committed to seeing the game through its final phases.

A New Direction for Night Street Games

With the restructuring complete, Night Street Games will continue with 13 remaining developers. The studio has outlined a clear path forward, focusing on two main objectives: supporting the current title and preparing for new ventures.

To support laid-off staff, the company has committed to helping them "find new adventures" over the next couple of months. Simultaneously, the remaining team will focus on delivering a proper send-off for Last Flag, including:

  • New Content: Additional characters, maps, and game modes.
  • Customization: New cosmetic options for players.
  • Player Agency: The ability for players to host lobbies with custom game rules.

Reynolds highlighted this shift as a pivotal moment for the studio's philosophy. "Putting the future of the game in the hands of our players is something we can all be proud of," he said.

Looking ahead, the studio will pivot its resources toward new game ideas. With the core team now focused on these fresh concepts, Night Street Games has promised to share more details on their next projects later. This marks a significant shift for the co-founded studio, moving from a player-driven lifecycle for Last Flag back to traditional development cycles for their upcoming titles.