We have been following claims about Bonfire Studios and its long-in-development title Arkheron, and what we're hearing — if true — paints a tense picture of leadership, tools and cuts at the studio. According to Insider Gaming, multiple sources inside the company say a relentless reliance on AI has contributed to delays, frustrated developers and even changes to how the team operates.
What Was Reported
Insider Gaming reports that Bonfire Studios, founded with help from Rob Pardo in 2016 after he left Blizzard two years earlier, raised $25 million at the start from Riot Games and Andreessen Horowitz and has spent the majority of the last eight years developing Arkheron.
The game was officially revealed in January 2025 and includes two modes: Ascension and Spires, with Spires described as a mode developed in 2026. But sources told Insider Gaming that behind the scenes things have been rocky.
- Staff inside the company allegedly described the situation as a "shitshow."
- There were regular meetings where leads repeatedly mentioned "talking to Claude" or spending hours with the agent to dissect work — a level of AI reliance that staff found demoralising.
- Developers claimed long stretches of work were undone or reworked after AI flagged purported problems: "We’d spend weeks or months working on something, only for AI to find its own flaws in it that we’d be forced to address," one source said.
- Those internal delays reportedly pushed playtests and announcements out, and financial decisions were questioned by some employees, including paying for services that weren't used for months.
- Days before layoffs that were first reported by Chris Kerr at Vertical Slice — which reduced the "team by seven roles" — Bonfire leadership were allegedly preparing to fly out to meet publisher Drimage to "put the fires out," a source told Insider Gaming.
Insider Gaming notes the company said the recent layoffs "had nothing to do with AI" and claimed they were done based on Bonfire's needs going into the game's launch and after bringing in a publishing partner. Insider Gaming also reports that most of the cuts were on publishing and administration, with contractors — including developers — among those let go.
Finally, Insider Gaming says Arkheron still doesn't have a release date and that Bonfire has promised more news "very soon."
The Source & Credibility
These claims come via Insider Gaming, which relayed anonymous sources inside the studio. Insider Gaming also tried multiple times to reach Rob Pardo and Bonfire Studios ahead of publication; the outreach was passed off and a direct denial tied the layoffs to launch needs rather than AI.
Take this with a pinch of salt: the details rely heavily on anonymous accounts and internal characterisations. That said, some corroborating points are present in public reporting — the studio's founding, initial funding and the official January 2025 reveal of Arkheron are all matters Insider Gaming includes in its coverage. If these anonymous claims are accurate, they offer a window into internal friction at a studio
