Game intel
Ashes of Creation
Ashes of Creation is a unique take on the MMO experience. The world structure is dynamic and built to react to the actions of our players. Cities will rise and…
This isn’t just another “studio closed” post. On February 22, 2026, founder Steven Sharif filed a lawsuit against Intrepid Studios’ board, alleging breach of fiduciary duty and mismanagement after his January resignation. What looked like a development setback for Ashes of Creation has morphed into a public, litigious unraveling destined to define the project for years—regardless of whether the MMORPG ever ships. Backers now face marathon court fights instead of game updates, and the parallels to 38 Studios are impossible to ignore.
A $3.27 million Kickstarter in 2017 and early access sales topping roughly 239,000 units promised a bright future for Ashes of Creation. By mid-2025, Steam charts showed a peak of 6,600 concurrent players—respectable numbers for a crowdfunded MMO in development. But behind the scenes, tensions between founder Steven Sharif and Intrepid’s board escalated. Sharif’s late January Discord post cited “unethical shifts in board control,” and days later the studio issued WARN notices listing layoffs of at least 123 employees. Within weeks, Massively Overpowered reported Sharif’s lawsuit, turning every dispute—unpaid wages, missing exit notices, disagreements over creative direction—into legal ammunition.
Now, instead of patch notes or livestream reveals, backers and former staff are watching court dockets. Settlement talks, discovery motions, class-action eligibility hearings—all loom on the horizon. For supporters who’ve poured years and money into a promised fantasy world, the shift from gaming news to legal filings is a gut punch that raises a simple question: can any developer failure feel worse than this?
Ashes of Creation launched its Kickstarter in October 2017, raising $3.27 million from over 41,000 backers. The pitch: a node-driven world where player action shaped entire regions. Early access began in 2021, with beta streams drawing healthy viewership. By late 2022, Intrepid announced partnerships, staff expansions, and promises of a full launch in 2023. But delays piled up: tech hurdles, talent turnover, funding gaps. In January 2026, SteamDB logs suggested asset sales via Uniform Commercial Code filings—signals that Intrepid was seeking cash infusions or liquidating IP rights.
Meanwhile, former communications director Margaret Krohn told PCGamesN she and other staff never received final paychecks or accrued PTO after the January layoffs. A U.S. law firm opened a WARN Act investigation within days, and industry watchdogs flagged missing state-mandated notices. These financial and regulatory missteps set the stage for Sharif’s formal suit, which alleges the board knowingly mismanaged funds and intentionally concealed critical information from both staff and investors.
Sharif’s complaint centers on three main claims:
Sharif seeks damages for his own equity losses, legal fees, and injunctive relief to prevent further asset transfers. Meanwhile, potential class-action plaintiffs could also pursue restitution for lost wages and benefits. Intrepid’s board has yet to publicly respond; no official statement has appeared on the studio’s website or social channels, deepening the sense of chaos.
Understanding the WARN Act is crucial: under U.S. federal law, companies must give a 60-day advance on mass layoffs to allow employees to seek new jobs or training. Violations can incur civil penalties of $500 per day for each affected worker, plus liability for back pay and benefits for up to 60 days. If a court finds Intrepid in violation, ex-employees could secure tens of thousands in damages each, and a class-action suit might expand that total significantly.
For Sharif’s breach-of-fiduciary-duty claim, remedies range from monetary damages reflecting his lost ownership stake to possible removal of board members if fraud or gross negligence is proven. However, corporate law disputes can take years to resolve; discovery phases alone might drag into late 2027 or beyond. In parallel, asset-recovery motions—aimed at reversing any questionable sales of intellectual property or real estate—could complicate Intrepid’s ability to negotiate a pitch to new investors.
Backers, classified as unsecured creditors, face a bleak outlook. Refunds typically come only after secured debts, bankruptcy costs, and priority claims (wages, taxes) are paid. Without a Chapter 11 or similar restructuring, supporters could be left with little more than digital memorabilia and a mountain of legal fees on the horizon.
The parallels to 38 Studios are chilling. In 2012, Curt Schilling’s Rhode Island-backed MMO received a $75 million state loan guarantee, then collapsed in 2013 amid missed deliverables and alleged financial mismanagement. Lawsuits flew between the state, investors, and the company’s leadership. By 2016, 38 Studios filed for bankruptcy; creditors recouped pennies on the dollar. Sharif’s suit echoes those claims of overambition and poor oversight. And just like 38, any protracted court battle could bury Ashes of Creation in legal fees, leaving backers and creditors scrambling for scraps.
Industry analysts say the lesson is clear: hype-driven MMOs without transparent governance and watchdog oversight often end in disaster. Fans remember fun gameplay; courts remember broken contracts and unpaid wages.
While Ashes of Creation sinks under legal weight, other MMOs prove resilience through modest budgets and community focus. Project: Gorgon, a cult favorite created by a small team, recently drew praise from PC Gamer for its quirky skill system—yes, you can level Psychology on pigs—and “healthy” engagement levels after a 5-hour hands-on test. Reports suggest near-4,000 concurrent players and a steadily growing subscriber base, underscoring demand for niche, emergent worlds.
On the big-budget side, CCP is quietly testing an optional AI-driven guidance system on EVE Online’s test server. Designed to improve onboarding without touching the core sandbox, this opt-in tool aims to lower the barrier for new capsuleers—while reassuring veteran pilots that their brutal, player-driven universe remains intact. If successful, CCP could strike a balance between retention and authenticity, a lesson Intrepid might have heeded in its own onboarding struggles.
Meanwhile, Star Trek Online launched its Season 35 “Corruption” this week, delivering new story missions, gear, and rep system tweaks. It’s a reminder that live-service MMOs with consistent updates—no matter how niche—can maintain player trust and financial health without spiraling into legal limbo.
1. Can you publish a transparent funding timeline showing Kickstarter proceeds, EA revenue, and burn rates? A clear ledger would blunt rumors and demonstrate fiscal responsibility.
2. What concrete steps are in place to facilitate refunds for backers or restitution for unpaid wages? Broad legal hedges won’t satisfy developers who lost paychecks or supporters waiting years for a finished game.
Steven Sharif’s lawsuit has transformed Ashes of Creation from a delayed MMO into a protracted legal saga with high stakes for backers, creditors, and former staff. With potential WARN Act penalties, fiduciary duty claims, and the specter of a class action, the road to any resolution could extend well into the next decade. Yet in the wider MMO world, indie successes and live-service staples remind us that transparent governance and community focus can keep this genre alive—even as overhyped projects burn out in court.
Sharif’s lawsuit over alleged mismanagement and unpaid wages turns Ashes of Creation into a lengthy legal battlefield. While big-budget hopes falter, indie titles and seasonal live-service updates show the MMO scene still thrives under the right leadership.
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