Snake Eyes Game Development in Flux: Studio Closure, Hasbro's Commitment, and the Future of the G.I. Joe Project

In the often-opaque world of video game development, few phrases are as loaded as "still in development." It can signal steady progress, a project on life support, or a corporate placeholder while difficult decisions are made behind closed doors. This phrase now hangs over one of the more intriguing licensed projects in recent memory: the Metal Gear Solid-inspired G.I. Joe game starring the iconic ninja commando, Snake Eyes. As of February 2026, Hasbro officially states the ambitious title is not canceled. Yet, credible reports from former developers indicate that Atomic Arcade, the dedicated studio founded solely to create it, has been shuttered. This contradiction places the project at a critical juncture, caught between corporate strategy and the harsh realities of a turbulent industry. The central question for fans and observers is stark: what future exists for a high-profile game when its original architects are gone?

The Current State of Play: Confirmation Amidst Contradiction

The official line from Hasbro is one of committed, if cautious, continuity. In a statement provided to Wccftech, the company confirmed, "The team is currently taking time to evaluate the path forward for the game. While decisions haven't been finalized, we're committed to providing updates as we're able." The key phrase "evaluate the path forward" is standard corporate language, but it explicitly frames the project as active, not abandoned.

This statement stands in direct contrast to evidence emerging from the developer community. On LinkedIn, former Atomic Arcade employees have publicly cited the studio's closure. Gameplay programmer Dominic Braun noted his time at the studio ended due to a "recent closure," a sentiment echoed by other departing staff. Atomic Arcade was not an independent contractor but a wholly owned subsidiary of Hasbro and Wizards of the Coast, making this an internal restructuring, not a severed partnership.

This creates the core mystery of the Snake Eyes project. How can a game remain "in development" if the studio built to develop it no longer exists? The answer lies in the distinction between a project's intellectual ownership and its operational execution. Hasbro owns the G.I. Joe IP and the game's concept; the closure of Atomic Arcade means the current method of execution has failed. Reconciling these facts suggests the project is in a state of limbo—alive in Hasbro's portfolio but without a clear team to bring it to life, forcing the "evaluation" the company mentions.

The Rise and (Reported) Fall of Atomic Arcade

To understand the significance of this disruption, one must look at Atomic Arcade's bespoke origins. Founded in 2021 in Raleigh-Durham, North Carolina, the studio was a strategic creation. Led by industry veteran Ames Kirshen, its singular, publicly announced mission was to develop this very Snake Eyes game. This was not a studio taking on a licensed project; it was a studio born from it, suggesting a deep, focused investment.

The vision was notably ambitious. Described as a "bold and contemporary" take on G.I. Joe, the game drew direct inspiration from the tactical espionage of Metal Gear Solid and aimed to move far away from the franchise's more cartoonish aesthetics. This pointed toward a mature, single-player narrative experience centered on one of pop culture's most famous silent warriors. The financial backing seemed to match this ambition. In 2024, Hasbro and Wizards of the Coast announced a massive $1 billion investment into their video game divisions, with the Snake Eyes title explicitly cited as a beneficiary. The closure of Atomic Arcade, therefore, represents not just the end of a studio but a major pivot in the deployment of that significant capital.

Navigating Industry Headwinds: Not an Isolated Incident

The shuttering of a well-funded, dedicated studio like Atomic Arcade is a stark signal, but it is one echoing across the entire industry in early 2026. This period has seen a continued wave of layoffs and studio shutdowns, making the Snake Eyes situation a poignant case study in a broader, painful trend. Major players like Ubisoft have undergone further restructuring, Meta closed its Iron Man VR studio Camouflaj, and Riot Games laid off staff from the 2XKO team. Even new, well-funded studios like Wildlight Entertainment, founded by former Call of Duty leads, faced cuts.

This pattern reflects a period of intense post-pandemic market correction and corporate consolidation. After a phase of rapid expansion and investment, publishers are now scrutinizing portfolios, cutting costs, and seeking profitability with renewed intensity. For a dedicated studio working on a single, unproven (if high-potential) licensed IP, this environment creates extreme vulnerability. The closure illustrates how broader financial strategies can abruptly override individual project development, regardless of the talent involved or the initial vision. Developer morale and project continuity become collateral damage, leaving games like the Snake Eyes title in a precarious state of corporate limbo.

Scenarios for the Future of the Snake Eyes Game

With Atomic Arcade reportedly gone and Hasbro on record seeking a new path, the future of the Snake Eyes game hinges on which strategic direction the company chooses. Several plausible scenarios exist, each with implications for the final product.

Scenario 1: Internal Transition.

Hasbro could move the project to another internal studio within its Wizards of the Coast gaming division or assemble a new internal team from the remnants of Atomic Arcade and other hires. This would aim to preserve the existing vision, design documents, and possibly some key staff. However, losing studio head Ames Kirshen and the original team's culture would inevitably alter the project's trajectory.

Scenario 2: External Partnership.

A common industry practice for troubled projects is to outsource development to a trusted third-party studio. Hasbro could shop the IP, engine, and assets to an established developer with action or stealth experience. This could save the project but would likely result in a significant reboot under new creative leadership, potentially changing the core vision Atomic Arcade established.

Scenario 3: Reboot or Re-evaluation.

The "evaluation" period could lead to a fundamental creative or strategic pivot. Hasbro might decide to alter the game's scope, switch engines, or even shift from a single-player focus to a live-service model. The billion-dollar investment means the company is still serious about gaming, but this scenario could see the Metal Gear Solid inspiration diluted in favor of a different, perhaps more commercially calculated, approach.

Scenario 4: Quiet Cancellation.

While currently denied, this remains a possibility if a viable new development path cannot be found. The significant sunk cost might be written off as the cost of navigating a difficult market. If updates from Hasbro cease and the project falls into years of silence, this scenario will have quietly come to pass.

The Snake Eyes game exists in a paradox of assured ambition and unsettling uncertainty. It is a project that commanded a dedicated studio and a share of a billion-dollar war chest, yet now finds itself untethered from the very team created to realize it. Hasbro's next move will be highly revealing, serving as a bellwether for its genuine commitment to the G.I. Joe IP in the AAA gaming space and its operational strategy in an era of volatility.

The gaming community, particularly fans who welcomed the promise of a mature, tactical take on a classic franchise, will be watching closely. Hasbro's promised updates will ultimately reveal whether this was a strategic recalibration or a mission destined for failure—a clear signal of how major IP holders are navigating gaming's new, unforgiving reality.

Tags: G.I. Joe, Snake Eyes, Atomic Arcade, Hasbro, Game Development