Why is Ustwo Games shifting to hiring more contractors instead of full-time employees?

The Cost Problem

Ustwo Games has been producing games with budgets between £7 million and £10 million over three to four year production cycles. CEO Maria Sayans determined these budgets are too high to achieve safe break-even points on PC and console platforms. She noted that competitors are successfully creating similar titles for much smaller budgets, which Ustwo cannot match while maintaining its London-based workforce with full employee benefits.

Why Contractors Make Financial Sense

Sayans explained that Ustwo's overhead costs—particularly employee pensions and job security commitments—make it difficult to compete on budget. By shifting to a model with a smaller core team and contractor-based growth, the studio gains flexibility and can control expenses more effectively. Expanding co-development teams and contract hires will also allow the company to scale up and down based on project needs.

The Strategic Shift

This move comes after Netflix pulled support for Monument Valley 3 and major publishing deals with companies like Netflix and Apple stopped materializing. Ustwo pivoted to a PC-first strategy focused on meaningful single-player experiences. Ports of existing games to Steam and Nintendo Switch moved hundreds of thousands of units, but production costs remained prohibitively high for sustainable growth on these platforms.

CEO's Mixed Feelings

Sayans characterized Ustwo's previous commitment to full-time employment and long-term job security as having been 'a little bit too romantic.' She acknowledged disliking this industry shift, noting that developers who joined in the early 2000s 'had it very good' with stable employment. However, she views the contractor model as a necessary adaptation for the studio's survival and future viability.