Home News > Shroud-backed FPS Spectre Divide shuts down after 6 months

Shroud-backed FPS Spectre Divide shuts down after 6 months

by Ethan Oct 28,2025

Shroud-backed FPS Spectre Divide shuts down after 6 months

Spectre Divide FPS Shuts Down After 6 Months Despite Shroud Endorsement

Spectre Divide and its developer Mountaintop Studios are shutting down after failing to meet performance targets and generate sustainable revenue. Discover CEO Nate Mitchell's official statement and the reasons behind this decision.

Spectre Divide Will Cease Operations in 30 Days

Disappointing Season 1 and Console Launch Results

Tactical shooter Spectre Divide is closing just six months post-launch after its first season and console release underperformed. The game's official Twitter account shared the news with fans on March 13th.

Mountaintop CEO Nate Mitchell explained: "Two weeks have passed since launching Spectre Divide Season 1: Flashpoint. While we deeply appreciate the community's enthusiasm, the response hasn't met our requirements to continue development."

Initial metrics showed promise with 400,000 players and 10,000 concurrent users across platforms. However, player retention and monetization failed to reach sustainable levels.

Spectre Divide promotional artwork

The Verge previously reported in December 2024 that Mountaintop viewed the Season 1 update as their final attempt to revive the struggling title. Game Director Lee Horn cited launch server issues as particularly damaging to player retention.

The studio will disable new purchases immediately and refund Season 1 transactions, with details to follow soon.

Closure Comes Despite $30 Million Funding Round

Spectre Divide gameplay screenshot

This shutdown surprises many, given Mountaintop's successful $30 million funding round in 2024 from prominent investors including Anthos Capital and A16Z GAMES.

Mitchell stated: "We explored every possible solution - finding publishers, additional funding, or acquisition opportunities. The current industry climate made continuation impossible."

The CEO reflected on their ambitious vision: "We aimed to innovate in a crowded genre with fresh mechanics, distinctive art, and collaborations with gaming legends. While we understood the challenges from the outset, the passion to create something special drove us forward."

Spectre Divide now joins other discontinued live-service titles like Multiversus and Babylon's Fall in the competitive gaming market.

Mountaintop Studios Ceasing Operations

Mountaintop Studios office

Mitchell confirmed Mountaintop will shutter by week's end, having exhausted all financial resources after the PC launch.

"We extended our runway as far as possible," Mitchell said, "but without additional funding, we have no choice but to close the studio."