The Fall of Dauntless: A Warning Shot Against Enshittification in Gaming
The shutdown of Dauntless on May 29, 2025, marks more than the end of a beloved free-to-play monster-hunting RPG—it’s a resounding rebuke of the market capture, money-chasing “enshittification” model that has plagued gaming for years. Phoenix Labs’ demise, driven by financial mismanagement, controversial acquisitions, and exploitative monetization, proves that Western gamers, unlike some in Asia more accustomed to freemium models, will vote with their wallets and torch Steam reviews when treated like cash cows. The collapse of Dauntless sends a clear market signal to publishers: relying on Epic exclusivity deals, whaling tactics, and freemium cash grabs is not sustainable. The industry must take note, or more games will follow Dauntless into oblivion.
The Enshittification of Dauntless
“Enshittification,” a term coined by Cory Doctorow, describes the process where platforms prioritize profits over user experience, degrading quality to squeeze every last dime. Dauntless epitomizes this. Launched in 2019 by Phoenix Labs, it was a scrappy, accessible alternative to Monster Hunter, amassing 15 million players with its vibrant world and co-op gameplay. But beneath the surface, the seeds of enshittification were sown.
The 2020 acquisition by Garena, the gaming arm of Sea Limited, marked a turning point. Garena, known for Free Fire’s aggressive microtransactions, pushed Dauntless toward a monetization model that alienated its core audience. X posts from former employees, like @chhopsky, allege that Garena’s oversight led to mismanagement, with founders profiting while producing minimal new content. A controversial update—details of which remain murky but widely panned—further eroded player trust, with Reddit threads decrying the game’s shift toward pay-to-win mechanics. By the time Forte Labs, a crypto-focused firm, acquired Phoenix Labs in 2024, the studio was a shell, gutted by over 100 layoffs in 2024 and 2025. The result? A game so hollowed out that its servers were shuttered, with no offline mode to preserve players’ investments.
Epic Exclusivity: A Deal with the Devil
The decision to launch Dauntless exclusively on the Epic Games Store was a textbook market capture move. Epic’s lucrative exclusivity deals, offering upfront cash to developers, lured Phoenix Labs into delaying a Steam release for years. This choice limited the game’s reach, as Steam’s massive user base could have bolstered its player count and revenue. When Dauntless finally hit Steam, it was too late—players had moved on, and the damage was done.
Western gamers, accustomed to Steam’s accessibility and community features, resented the exclusivity. Steam reviews, now sitting at “mixed” for Dauntless, reflect this frustration, with players citing not just technical issues but a sense of betrayal over the game’s direction. Unlike some Asian markets, where mobile-centric platforms like Epic’s are more accepted, Western players see such moves as prioritizing corporate cash over community loyalty. The Epic deal may have padded Phoenix Labs’ coffers temporarily, but it alienated the very audience needed to sustain a live-service game.
Whaling and Freemium: A Losing Bet
The freemium model, with its reliance on “whales” (high-spending players), is a cornerstone of enshittification, and Dauntless leaned hard into it. In-game purchases for cosmetics, boosts, and other perks became increasingly aggressive, with players on Reddit reporting feeling “cheated” by systems that seemed to demand spending to stay competitive. This approach may resonate in Asian markets, where mobile gaming cultures often tolerate heavy monetization—Free Fire, for example, thrives on microtransactions—but Western players are less forgiving.
Steam reviews and X posts, like those from @Gothalion, highlight a growing resentment toward Dauntless’s monetization. Players didn’t just dislike the game’s direction; they felt exploited. Western gamers, particularly in the PC space, are quick to voice displeasure through reviews and boycotts. Dauntless’s “mixed” Steam rating, despite its 300,000 peak players, underscores this. When a game prioritizes whaling over fun, it risks losing the casual and mid-tier spenders who form the backbone of a healthy player base. By chasing short-term profits, Phoenix Labs ensured long-term failure.
Western Gamers Vote with Their Wallets
The cultural divide between Asian and Western gaming markets is stark. In Asia, particularly in mobile-heavy regions, players often accept freemium models as the cost of free-to-play gaming. But Western players, especially on PC and consoles, demand value and respect. When Dauntless pushed predatory monetization and neglected meaningful updates, its Western audience didn’t just complain—they abandoned ship. The game’s declining player base, cited as a key reason for its shutdown, reflects this exodus. Steam reviews became a battleground, with players warning others to steer clear, effectively starving the game of new blood.
This contrasts sharply with successes like Elden Ring: Nightreign, which, despite its punishing difficulty, respects its audience by delivering a cohesive vision. FromSoftware’s refusal to overly soften Nightreign for casuals has earned it 2 million players in 24 hours, proving that authenticity can trump market capture. Western gamers reward games that prioritize quality over cash grabs, and Dauntless’s failure is proof they’ll punish those that don’t.
A Market Signal to Publishers
The collapse of Dauntless is a wake-up call for publishers. The market capture model—snagging Epic exclusivity deals, chasing whales with freemium tactics, and prioritizing profits over players—is a death spiral. Dauntless’s shutdown, coupled with Phoenix Labs’ layoffs and Forte Labs’ crypto-fueled missteps, shows that these strategies are unsustainable. Western gamers, empowered by platforms like Steam and X, will not tolerate being treated as cash cows. They’ll downvote, boycott, and move on to games that respect their time and money.
Publishers must learn from this. Epic’s cash injections may offer short-term security, but they alienate players and stunt growth. Freemium models that exploit rather than engage erode trust. The industry needs to prioritize sustainable development—fair monetization, transparent communication, and a focus on fun over profit. Games like Helldivers 2 or Baldur’s Gate 3 show that players will flock to titles that deliver value, even at a premium price. If publishers ignore this signal, they risk more Dauntless-style implosions.
Conclusion: The End of Enshittification?
Dauntless’s shutdown is a cautionary tale of enshittification run amok. By chasing Epic’s money, leaning on whaling, and neglecting its community, Phoenix Labs sealed its fate. Western gamers, through their wallets and scathing Steam reviews, have sent a clear message: treat us like cash cows, and we’ll let your game die. This market signal should resonate across the industry. The era of exploitative, money-chasing publishing is crumbling, and only those who prioritize players over profits will survive. Let Dauntless be the last casualty of enshittification—publishers, take heed.