Rooster Teeth, the entertainment company behind the iconic Halo parody machinima Red vs. Blue, is shutting down after 21 years.
This was announced alongside a staff-wide memo from general manager Jordan Levin, as reported in Variety. The memo states that the company’s closure was due to “challenges facing digital media resulting from fundamental shifts in consumer behavior and monetization across platforms, advertising, and patronage.”
Warner Bros. Discovery is in talks to sell off a decent chunk of Rooster Teeth’s popular IPs, including Red vs. Blue. The show spawned the concept of Machinima by using the Halo games to tell a story in serialized format, which made Rooster Teeth famous in 2003. This was also the same year the company was founded.
In recent times, Rooster Teeth has become more associated with RWBY, an anime-inspired show that has run for nine seasons, resulting in multiple spin-offs and games.
Over 150 full-time employees are being laid off following the closure of Rooster Teeth. This will also affect various content creators and contractors that partner with the company. Warner Bros. Discovery is also trying to sell the Roost podcast network that covers numerous topics ranging from true crime to gaming. Roost will keep operating until a potential buyer is found.
Variety claims that Rooster Teeth has been operating at a loss for the past 10 years, and RTX, the annual fan convention (canceled in 2024 before the news of the company shut down), has never been profitable. In 2022, the company received allegations of harassment and low-pay from a former employee. In a statement, Rooster Teeth said it was “disheartened to hear of anyone who has experienced pain” while working with them, and it would work to investigate and address past conduct going forward. Last year, the company rebranded to celebrate its 20th anniversary with a new tagline and logo that says, “Just Playing.”
In the memo, Levin stated that management is “working through what comes next in real time” in order to “implement the best way to wind things down for us and our community.” Levin continued by saying, “Our legacy is not just a collection of content but a history of pixels burned into our screens, minds, and hearts. Rooster Teeth has made an indelible mark on the media industry, and we should be so proud of the countless ways we pioneered a business connecting creators and content with a dedicated community.”