Pahdo Labs, the developer behind the anime-inspired action RPG Starlight Re:Volver, has announced its closure after failing to secure sustained commercial success for its projects. The studio, which had previously raised $17.5 million in funding, has shut down operations, leaving behind two unfinished games: the original Starlight Re:Volver* and a demo for Edge of Divinity, a 1–4 player P2P roguelite set in a cosmic tower.

Despite a well-received demo during Steam Next Fest, Starlight Re:Volver underperformed at launch, prompting the studio to halt updates just three months after its early access release. The team laid off half its workforce and pivoted to developing Edge of Divinity as a potential investor pitch—a game designed with smoother combat, streamlined progression, and a deeper combat system compared to its predecessor. However, efforts to secure additional funding proved unsuccessful.

Pahdo Labs Shuts Down After $17.5 Million Funding, Leaving Unfinished Anime Action RPG Demos Behind

The studio’s closure underscores the challenges of breaking into the competitive multiplayer anime RPG space, where free-to-play gacha titles like Genshin Impact dominate. Edge of Divinity, which was intended to showcase lessons learned from Starlight Re:Volver, remains available as a demo on Steam, offering a glimpse into Pahdo Labs’ final attempt at a paid alternative in the genre.

Of the $17.5 million raised, over half was allocated to Starlight Re:Volver, while the remainder supported past experimental projects, including Halcyon Zero, an earlier prototype of the same game. The studio’s three-game journey—Halcyon Zero, Starlight Re:Volver, and Edge of Divinity—represents a persistent effort to refine a niche but crowded market.

For players curious about Pahdo Labs’ legacy, the Edge of Divinity* demo provides a final look at its vision for a roguelite with cooperative gameplay and a cosmic setting. The studio’s shutdown marks the end of an ambitious run, leaving behind a catalog of unfinished projects and a reminder of the hurdles facing indie studios in the RPG space.