Recently, Automata (ATMTA), a gaming company operating on the Solana blockchain, unveiled an exciting restructuring plan that places their highly anticipated game, Star Atlas, in the spotlight.
In a Discord message on July 24, 2023, ATMTA’s CEO and co-founder, Michael Wagner, shared that the company would be undergoing a significant reduction in staff, scaling down to a lean team of only 45 members. This downsizing is a stark contrast to their workforce of 235 employees at the end of 2022. According to the attached document on Discord, this decision stems from a range of challenges, including shifts in web3 sentiment, losses incurred by their in-game token Atlas, tax obligations, and financial setbacks arising from the collapse of FTX.
Despite facing various difficulties, the company has achieved significant milestones. These include developing AR experiences with top artists, creating an SDK, releasing graphic novels, and more.
However, due to financial challenges, the company has made the decision to restructure. Wagner explained that approximately 33% of the project’s revenue was held in the form of in-game token Atlas, which has experienced an 80% loss in value over the past year.
Although efforts to raise capital during this period were partially successful, ATMTA had to reduce its team size and shift focus to prioritize the delivery of the SAGE game and the newly announced Crew Mobile App.
Wagner stated that the team will now concentrate on delivering SAGE and the mobile app while reducing the scope and timeline for their Unreal Engine 5 product and Solana, which serves as the foundation for the Star Atlas game.
ATMTA believes that this strategic move will improve operational efficiency and make the company more attractive to potential investors in the future. CEO Michael Wagner thanks departing team members and reassures the ATMTA community of their commitment to providing innovative and high-quality experiences in the evolving web3 gaming industry.
The gaming community eagerly anticipates further updates on the progress of Star Atlas, as well as the development of SAGE and the Crew Mobile App. Automata is charting a new course to overcome its financial challenges and fulfil its ambitious vision for the future.
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