Rooster Teeth, the beloved Austin-based animation, comedy, and gaming studio, is facing a significant development as it announces its shutdown after 21 years of operation. This decision will have far-reaching implications, including layoffs for 150 full-time employees and additional contractors and content creators losing a vital source of income.
The closure of Rooster Teeth comes amidst challenges in the digital media landscape, driven by fundamental shifts in consumer behavior and monetization across platforms, advertising, and patronage. This decision reflects the evolving dynamics of the industry and the need to adapt to changing trends to remain sustainable in a competitive environment Founded in 2003 with the creation of Red vs. Blue, a groundbreaking machinima web series produced using Halo, Rooster Teeth quickly gained popularity and expanded its portfolio to include animated series like RWBY and gen:Lock, podcasts, YouTube channels, film and game projects, among other creative endeavors. Despite its diverse content offerings and loyal fan base, Rooster Teeth has faced financial challenges over the years, operating at a loss for at least a decade.