Overview
Mountaintop Studios was a game developer founded in 2020 by Nate Mitchell and Matt Hansen. Its first game, Spectre Divide, was a free-to-play, three-versus-three tactical shooter. Each player controlled two bodies and could switch between them during a round. The studio launched the game on PC in September 2024, brought it to consoles in February 2025, and announced its closure two weeks later. CEO Mitchell said the game had not attracted enough sustained players and revenue to cover operating costs.[1][2][3]
Founding Story
Mitchell had co-founded Oculus, and Hansen had worked with him there. They built Mountaintop as a remote-first studio, recruiting people from established game developers. In 2021 the studio announced a $5.5 million seed round, followed by a $30 million Series A led by Andreessen Horowitz. An investor's announcement described a team aiming to make competitive games for a wider audience; it did not describe a shipped title.[4][5][6]
In a later interview, the founders said Mountaintop raised another $30 million in 2023. Some initial closure coverage reported only the earlier rounds. The later account is the more complete description of the three rounds, although it does not disclose how much cash remained at launch.[1][7]
Timeline
- 2020: Mitchell and Hansen establish the studio.
- 2021: The studio announces seed and Series A funding.
- 2024: Spectre Divide launches on PC.
- 2025: The game reaches consoles; Mountaintop announces closure.
What They Built
In Spectre Divide, each player could position a second body, called a spectre, and switch between the two. That allowed a small team to cover more of the map and created tactical choices about when to move. The game competed for attention with established tactical shooters including Counter-Strike and Valorant. Streamer Michael “Shroud” Grzesiek was involved with the project as an investor and collaborator.[1][8]
Market Position
Target Customers
Players of competitive multiplayer shooters.
Market Size
The sources reviewed do not establish a reliable addressable market estimate for this company.
Competition
The game entered a crowded market where established shooters had mature content and player communities. A distinctive mechanic gave players a reason to try it, but the studio still had to earn repeat play.[1]
Business Model
The game was free to play and sold cosmetic items. The studio reduced store prices after early criticism; its sales and operating costs were not publicly broken down.[9]
Traction
The free PC release on September 3, 2024 attracted attention, but its first days also exposed friction. Coverage reported matchmaking and server issues, along with criticism of the prices of cosmetic items. Mountaintop reduced those prices by 17–25%. A contemporaneous review praised the two-body idea while criticizing other aspects of the game, including missing features and monetization. These observations describe reception; they do not establish that pricing alone caused the closure.[8][9][10]
Mountaintop laid off 13 people in September 2024, shortly after launch. It continued to update the game and prepared a console release. In their later interview, the founders described a difficult comparison: players evaluated a new game against competitors that had years to build maps, features, and communities.[1][7]
Post-Mortem
Operating constraints and outcome
Season 1 and the console versions launched on February 25, 2025. On March 12, Mitchell told players that roughly 400,000 people had played since the season launched, with a peak of about 10,000 concurrent players across platforms. Those measures count different things: the first is players over a period, while the second is the highest number playing at once. Neither establishes revenue or retention.[2][3]
Mitchell said activity and revenue had fallen short of the costs of operating the game and studio. Mountaintop had explored a publisher, new investment, and an acquisition, but found no route to continue. The studio expected to close that week, disable new purchases, and refund purchases made since the season launch. It planned to take the game offline; a later server notice gave April 17 as the shutdown date.[2][7][11]
The company disclosed no detailed revenue, retention cohorts, or cost breakdown. Its account establishes the immediate funding and operating shortfall, while the relative influence of launch problems, competition, and other choices remains uncertain.
Key Lessons
- Reach and repeat play differ. Mountaintop’s first season drew about 400,000 players, but activity and revenue did not cover costs.
- A new shooter meets established rivals. Spectre Divide entered a market where competitors had years to add features and communities.
- An update needs runway. Price cuts and a console launch did not secure the funding to keep the studio operating.
Sources
- Brian Crecente, interview with Nate Mitchell and Matt Hansen, 80 Level, August 2025.
- Letter to Spectre fans, Mountaintop Studios, March 2025.
- Spectre Divide to end service, Gematsu, March 2025.
- Mountaintop raises $5.5 million, Game Developer, February 2021.
- Mountaintop nets $30 million, Game Developer, August 2021.
- Investing in Mountaintop, Andreessen Horowitz, August 2021.
- Mountaintop shutting down after Spectre Divide falls short, Game Developer, March 2025.
- Spectre Divide review, Shacknews, September 2024.
- Cosmetic prices reduced after launch, Insider Gaming, September 2024.
- Launch issues and player count, PCGamesN, September 2024.
- Server shutdown notice, Spectre Divide community notice, April 2025.