A two-day announcement-to-cancellation disaster has claimed its final victim: developer Goonswarm Games.
The two-day announcement-to-cancellation disaster surrounding Postal: Bullet Paradise has claimed its final victim: developer Goonswarm Games. The studio is officially closing its doors following a brutal community backlash and subsequent project cancellation, making it one of the fastest industry collapses in recent history.
The controversial “bullet heaven” action title—a Vampire Survivors-style spin-off of the infamous Postal franchise—was announced and then killed off within a shocking 48 hours. The source of the “overwhelmingly negative” response centered entirely on the suspected use of AI-generated assets in the game’s promotional materials.
The Publisher’s Swift Hammer
The first and fatal blow came from the publisher, Running with Scissors (RWS). Founder Vince Desi did not mince words in his statement, declaring the project dead and publicly cutting ties with the developer.
“The strong feedback from them is that components of the game are very likely AI-generated and thus has caused extreme damage to our brand and our company reputation… Our trust in the development team is broken; therefore, we have killed the project.”
RWS, a company known for its own brand of controversy, saw its reputation at stake and did not hesitate to pull the plug. The community was quick to point out suspect voice work and artwork in the announcement trailer, arguing it was a clear case of cutting corners with AI tools—a massive point of contention in the current development landscape.
For reference, the announcement trailer that sparked the controversy can be seen here:
Studio Collapse: From Denial to Apology
The drama didn’t end with the cancellation. Goonswarm Games released a series of emotional statements, ultimately confirming the studio’s collapse.
Statement 1: The Closure (and Denial)
In an initial defiant response, Goonswarm announced it was “ceasing operations altogether” and would “end all future activities.” They strongly insisted the team was “mistakenly accused” of utilizing generative AI tools.
This announcement was posted shortly after the cancellation: https://twitter.com/goonswarmgames/status/1996984553257279918?s=20
Statement 2: The Admission (and Final Apology)
A day later, the tone shifted drastically. Following an “internal review,” the studio issued a stunning mea culpa, admitting that the community’s “concerns were valid” regarding the AI usage in their “promo art.”
“We previously announced the closure of the studio, but even in this state we feel responsible for the outcome… As far as our remaining resources allow, we will replace all disputed promo art across our projects with pieces created entirely by human artists. It will take time, but we will do it.”
This final, desperate attempt to make amends was too little, too late. The damage had been done, the project was dead, and the studio is no more.
The follow-up statement can be found here: https://twitter.com/goonswarmgames/status/1997357931436663056?s=20
Your Take: The New Battle Line?
The rise of generative AI has become one of the industry’s biggest flashpoints, with games like Call of Duty: Black Ops 7 and ARC Raiders, among others, also facing criticism this year. This latest saga is a stark warning: gamers are actively scrutinizing every asset, and swift public outrage can now be powerful enough to tank a game and shutter a development house overnight.
Was Running with Scissors right to immediately kill the game, or did Goonswarm Games deserve a second chance? Tell us what you think below!
