Hasbro Confirms Atomic Arcade Closure, Snake Eyes G.I. Joe Project Under Review

Hasbro has told a trade outlet that Atomic Arcade, the Hasbro and Wizards of the Coast–owned studio in North Carolina, has been closed, while a company representative has said the Snake Eyes G.I. Joe project "is not cancelled" and that the team is evaluating the path forward. A Hasbro spokesperson confirmed the studio closure in an email to Game Developer, and a separate representative provided the statement that has been circulated in press updates.

Atomic Arcade was founded in 2021 to build a high-quality AAA game around Snake Eyes, the ninja/commando from G.I. Joe. The studio's public website stated, "We are busy developing our first project: a high-quality video game centered around Snake Eyes, the legendary ninja/commando character from G.I. Joe." LinkedIn listed Atomic Arcade with an employee range of 51–200, and the studio posted a 2024 job listing seeking a Sr. World/Level Designer with experience in open-world and linear design for "a bold and contemporary new take on the GI JOE Universe." Hasbro first announced plans for a Snake Eyes game in 2022, and reporting indicates the title was greenlit in 2023.

Former staff began posting about the closure on professional social media in mid-February 2026. Gameplay programmer Dominic Braun wrote, "Hi everyone! I've been affected by Hasbro's and Wizards of the Coast's decision to close Atomic Arcade," and added, "While this obviously stinks, there are a lot of really great people now available, including myself." Multiple unnamed former employees likewise posted that they are "currently exploring new opportunities following the recent closure of Atomic Arcade" and expressed regret and support for colleagues. Derek Racca, identified as Atomic Arcade's former studio head and general manager, has moved to a role as director of production at Wizards of the Coast in February 2026.

Public detail on the Snake Eyes project is limited. Sources note only a handful of screenshots of Snake Eyes' armor and an image described as a close-up of a character holding a katana with a partial digital display on the blade and the text "Atomic Arcade" in the image. It remains unclear how far into development Atomic Arcade's project was and whether the work will be absorbed by another internal studio or paused while Hasbro evaluates the path forward.

Industry context shows Atomic Arcade's closure is part of a wider surge of staffing changes in February 2026, with other studios such as 10 Chambers and Wildlight publicly confirming layoffs or reductions to core teams. Hasbro's representative statement, "The Snake Eyes game is not cancelled. 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 soon as we're able", is the most specific corporate language available about the IP's status. Key open questions remain: exact layoff numbers, the project's development milestone, and whether Hasbro will transfer the project or personnel to another internal team. Hasbro has said it will provide updates when available.