Sadly, layoffs are an unfortunate reality in the gaming industry and beyond, with perhapsthe shutdown of Telltale Gamesbeing the biggest to hit the gaming world recently. Now, it seems that it is being followed by Machinima, a prominent content creation channel back in the early days ofYouTube, as the multi-channel network has begun laying off employees and ceased operations.
Purchased by Warner Bros. in 2016, Machinima’s long run has ended with it being folded into Otter Media, which also runs notable media entities such as Crunchyroll, VRV, and Rooster Teeth. For those paying attention, however, the writing’s been on the wall for some time, asMachinima deleted over 10 years' worth of YouTube videosback in January 2019.

Since then, 81 of approximately 100 employees have been laid off, effective March 16. This is due to California’s Worker Adjustment and Retraining Notification (WARN) act that requires advanced notice of massive layoffs. Among those who remain is Russell Arons, general manager of Machinima first appointed back in 2017. According to a Machinima Spokesperson,
“A select number of Machinima employees remain with the company, which is now actively providing services to supercharge the combined portfolio of Otter Media. Machinima has ceased its remaining operations, which includes layoffs. Russell Arons remains with Machinima, and is assisting with transitional activities as she explores new opportunities.”
Following this announcement, Otter Media has released a statement insisting that Machinima was not dead, as the company has “brought over valuable parts of the Machinima business.” Though that primarily seems to be an issue of semantics; Machinima will no longer be theYouTube-centric, consumer-facing brand that many have come to know and love.
And although Machinima was not without its fair share of controversy, it also once touted 2 billion monthly views with a strong 200 million+ audience. For many gamers, this is the end of a chapter in their life, not unlikethe closure of strategy guide company Prima Games. It doesn’t seem likely that Telltale, Prima, or Machinima will be the final casualties either, as the gaming world evolves and changes faster than some other industries.