Cyprus studios join global push to reshape gaming industry

Five game development studios, including Cyprus-based companies in Limassol and Nicosia, have announced the creation of Nova Assembly, a developer-led holding aimed at reshaping the global gaming industry.

The initiative brings together Limassol-based studios Unfrozen, Sad Cat, VEA Games, and Weappy, along with Nicosia-based Game Garden, placing Cyprus at the centre of the new alliance.

The newly formed structure is co-owned and operated by the participating studios, allowing each team to retain full control over its creative direction.

At the same time, the group enables shared expertise across development and marketing, reducing reliance on external outsourcing while strengthening internal collaboration.

The move comes amid widespread layoffs, studio closures and consolidation across the global gaming industry, prompting independent developers to seek more sustainable models.

The studios explained in an open letter that growing instability and corporate-driven decisions have reshaped the sector, often at the expense of creativity and long-term development.

“There are successful releases and promising announcements but what about something that impacts the entire sector,” the studios said.

“Instead mass layoffs, studio closures and cancelled games spring to mind with alarming ease,” they added.

They also warned that technological disruption and the rise of generative AI are adding further pressure on creative industries.

“What seemed yesterday like the inevitable costs of big money and massive scale has today taken on a new character one that is truly cruel and inhumane,” the studios stated.

In this context, the group said it aims to build a more resilient and collaborative model for independent developers, rather than waiting for broader industry change.

“We are not waiting around for the old order to collapse and bury us beneath its rubble we want to try building something new right now,” the studios said.

Nova Assembly will not merge projects but will instead allow each studio to continue developing its own games independently, while sharing resources, knowledge and technology.

The alliance also plans to develop its own publishing arm, enabling direct communication with audiences and greater control over game releases.

“We will share absolutely everything that can be shared,” the studios said.

The combined pipeline already includes 10 games across multiple genres, generating more than 3 million wishlists and over 10 million video views.

Among the flagship projects, Unfrozen is developing Heroes of Might and Magic Olden Era, which has surpassed one million wishlists and ranked among the most anticipated titles on Steam.

Sad Cat Studios is preparing REPLACED, which has attracted more than 850,000 wishlists and is also ranked among the most anticipated games globally.

VEA Games’ Nikoderiko The Magical World has achieved a Metacritic score of 82, while Game Garden’s mobile portfolio has exceeded 100 million downloads.

Weappy’s This Is the Police series has sold more than 1.5 million copies worldwide, underscoring the commercial track record of the participating studios.

“The formation of a single holding structure bringing together five commercially successful and highly promising game studios will not only enable creators of ambitious gaming projects to share invaluable expertise accumulated over years of experience, but will also allow for more efficient and strategic use of shared resources,” said Denis Fedorov, founder of Unfrozen and chief executive officer of Nova Assembly.

“And all that without compromising creative independence which ultimately remains the key driver of competitiveness in today’s challenging market,” he added.

“In a world where we increasingly give over control to algorithms we are uniting with like-minded people to reinforce the human element to exchange human ideas offer each other human support and make human decisions together,” said Ilya Yanovich, co-founder of Weappy and creative director of Nova Assembly.

The first release under the new structure will be REPLACED, scheduled for launch on April 14, 2026, marking the beginning of Nova Assembly’s coordinated development efforts.

The studios stressed that their goal is not to dominate the industry but to offer a viable alternative model, one that prioritises creativity, collaboration and sustainability.

“We do not believe we alone can save the video game industry but we hope to serve as a positive example and inspire others to challenge the status quo,” the studios concluded.