It’s been two weeks since Sony announced that it would unprecedented step of undoing Treaty and almost as long ago that the ill-fated, sci-fi hero shooter was officially taken offline. In the time since, Kotaku understands that developers at Firewalk Studios are in limbo about their future as they await Sony’s decision on what will happen next Treaty and the team.

Whatever happens, game director Ryan Ellis will not be at the helm. Previously at Bungie, he was creative director at Lot 2, Ellis left in 2017 to lead the development of what would eventually become Treaty. According to three sources familiar with the change, he told Firewalk employees last week that he would step down as game director and instead take on a supporting role.

Sony did not immediately respond to a request for comment.

Ellis was the primary shot caller on Treatywhich despite praise for its underlying shooter gameplay, failed to attract an audience, with analyst Simon Carless estimate to IGN that the $40 PVP-only game had only sold around 25,000 copies, abysmal numbers considering not only its budget but also the PlayStation first-party brand it represented. Sony acquired Firewalk in 2023 for an undisclosed sum after years of the game being in production and being promoted Treaty both during that year’s PlayStation showcase in May and in 2024.

“Ryan was a huge believer in that project and bringing players together through the joy that came with it,” said one former developer, who said he felt Ellis had put too much of himself into the game, which led to a lot of stress. “Regardless of whether there were things that could have been done differently during development… he’s a good person and a big heart.”

Sources said Kotaku that Ellis was too emotional to speak at times during a post-launch studio-wide meeting after it became clear the game was a flop. In a September 3 post PlayStation Blog Post announce Treaty‘s removal from store shelves, Ellis wrote, “aspects of the game and our initial launch did not perform as we had intended.” He added that the team would “explore options, including options that would better reach our players” and work to “determine the best path forward.”

Some outsiders speculated that Treaty could be relaunched by the end of this year or as a PS Plus exclusive or free-to-play game in early 2025 to get more players to try it. The game’s existing content roadmap was expanded to three seasons, complete with the promise of expensive weekly cutscenes that tell the story of Treaty‘s world and characters.

But for many inside the studio, it’s still unclear what will happen next, three sources said KotakuThey are pessimistic Treaty will return, and some have been asked to scout pitches for something completely different that Firewalk, which currently has around 150-170 employees, might work on next. Speculation among some staffers has also included whether the studio could be used as a co-development tool for one of Sony’s numerous other first-party projects currently in production.

Others, however, believe mass layoffs will be the most likely outcome. Treaty‘s failure, including the possible closure of the entire studio, sources report Kotaku is one of the more expensive studios in the PlayStation portfolio on a per-head basis. Some developers are updating their resumes and portfolios, a few have already left the studio as a precaution, and others are still waiting to see what a potential severance package will look like before deciding what to do next.

Sony has set deep cuts earlier this yearwhich included the cancellation of multiple games and the closure of the PlayStation London Studio. But with competitor Microsoft recently another 650 people from the Xbox gaming divisionand with the end of a new fiscal quarter in sight, more cuts could be coming.