Escape From Playtime developers are being laid off two weeks after its early access launch
Mob Entertainment confirmed it has jettisoned 16 employees shortly after the horror debuted on October 21.
The company also reiterated its stance that consumers are not entitled to tariff-related refunds.
The Switch 2 has topped 26.3 million unit sales since launching in June 2025 but is now losing momentum.
As noted in Nintendo's fiscal report for the second quarter of the current fiscal year (Q2 FY27), consolidated net sales declined by 12.1 percent year-on-year to 966 billion yen ($6.1 billion), while net profit increased by 11 percent to 220.9 billion yen ($1.4 billion).
Nintendo Switch 2 sales dipped by 37.4 percent year-on-year to 6.49 million units, but Nintendo explained that "many consumers continued to adopt the system" thanks to the release of new titles.
Nintendo Switch 2 software sales increased by 18.8 percent year-on-tear to 24.49 million units, and sales of software for the original Nintendo Switch rose by 6.8 percent to 65.73 million units over the same period.
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