Garena Shuts Pune-Based Versus Game Studio Amid Free Fire Max Revenue Push: What We Know So Far

Garena has shut down its Pune-based Versus Game Studio, marking a significant retreat from the Singaporean gaming giant’s earlier ambitions to build original titles out of India. The studio, which was developing a fighting game based on Indian epics like the Ramayana and Mahabharata, has been quietly wound down as Garena doubles down on its money-spinner — Free Fire Max, as reported by Rishi Alwani on High Chaos Run.

The game, also called Versus, had been in development for some time and had even seen a soft launch on the Google Play store. It featured mythological characters such as Duryodhana and Jambavan in a brawler-style combat setup, taking inspiration from genre heavyweights like Mortal Kombat and Injustice. However, it failed to meet internal benchmarks during playtests, and Garena ultimately decided to pull the plug.

Multiple sources familiar with the matter confirmed to Alwani that the studio was shuttered late last month, with Garena executives flying in from Singapore to break the news in person. “Versus did not meet Garena’s own metrics in its soft launch and playtests,” employees were told during the closure meeting.

Leadership Exit, Communication Breakdown

The closure caps months of slow attrition. Versus Studio had seen steady departures after its head, Karna Krishnan, left in November 2024 to launch his own venture, Itihasa Games. By the time of its shutdown, the team had shrunk from over 30 members to roughly half that size.

People close to the matter also pointed to a growing communication gap between Garena HQ and the Pune team, which may have played a role in the eventual closure. Versus reportedly failed to gain the confidence of its parent company.

Garena Narrows Focus on Free Fire Max

The decision to shutter the studio comes at a time when Garena is consolidating its efforts in India. The company currently operates two other studios — one in Pune working on a cricket title, and another in Mumbai developing a Ludo game. These teams are headed by industry veterans Roopak Nair and Clarence Pereira, respectively.

While Garena had explored the idea of expanding its India footprint last year — including discussions around acquiring local studios — those talks didn’t progress. Later, the company reportedly looked for partners to co-own its Indian ventures, offering to retain a 40% stake, which sources say made potential investors wary due to limited upside.

Instead, Garena has turned its focus fully to Free Fire Max, which has emerged as India’s highest-grossing mobile game. According to Sensor Tower data cited by LetsGrowEsports, India contributed nearly half of the game’s global revenue in 2024, amounting to around $326.3 million.

In contrast, efforts to bring back the original Free Fire — banned in India in 2022 — have been quietly shelved. Despite a high-profile announcement about its planned return in September 2023, insiders say the relaunch is no longer on the table.

Questions Over Industry Commitment

The move raises larger questions about Garena’s long-term commitment to nurturing India’s game development ecosystem. While rivals like Krafton have invested in local initiatives, Garena appears more focused on maximising its revenues than fostering talent or innovation in the market.

The closure of Versus Game Studio follows April’s layoffs at another Pune-based developer, SuperGaming, further underlining the volatility in India’s gaming development sector — even as user engagement and revenue continue to surge.

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