Pahdo Labs Studio Shuts Down After Raising $17.5 Million in Investments
The gaming industry in 2026 continues to be brutal for startups. This time, Pahdo Labs studio announced its closure. The studio was working on an ambitious anime action-RPG titled Starlight Re:Volver. Despite securing substantial funding of $17.5 million, the project never reached release, and its early access version stopped receiving updates several months ago.
The studio's strategy was to create a "familiar, yet new" game. They believed that a high-quality demo would help attract the next round of investment. However, in the current market conditions, investors have become much more cautious, and even an "impressive demo" proved insufficient to secure continued funding.
The game was intended to be a cooperative action game for 1-4 players set in an MMO universe with hub locations.