Stormgate Loses Multiplayer After AI Company Acquires Gaming Server Provider Hathora

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Frost Giant Studios' real-time strategy game Stormgate is shutting down multiplayer modes after its server orchestration partner Hathora was acquired by Fireworks AI. The game will be patched for offline play while developers search for new hosting solutions. Other titles like Splitgate 2 and Predecessor may face similar disruptions.

AI Industry Impact on Gaming Reaches Server Infrastructure

Stormgate, the free-to-play real-time strategy game developed by former Warcraft 3 and StarCraft 2 veterans at Frost Giant Studios, faces an unprecedented challenge as its multiplayer modes go dark at the end of April

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. The culprit isn't player count or financial struggles, but rather a server provider acquisition that redirects critical gaming infrastructure providers toward AI needs

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. Hathora, the game's server orchestration partner, was purchased by Fireworks AI last month, a company that describes its offerings as "open-source AI models at blazing speed, optimized for your use case, scaled globally with the Fireworks Inference Cloud"

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. This marks what appears to be the first instance of AI taking game modes away from players, not just jobs from game developers

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Source: Wccftech

Source: Wccftech

Multiplayer Servers Shutdown Affects Multiple Titles

The implications extend beyond Stormgate alone. According to reports, Hathora also provides online gaming services for Splitgate 2 and Predecessor, with those services currently frozen

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. After 90 days, the server platforms will be pulled permanently as Hathora winds down its gaming service aspect completely

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. Fireworks AI, started by former Meta AI division employees, serves 10,000 customers with AI-led code assistance, agentic systems, and conversational bots

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. As AI usage proliferates, the demand for computing power and cloud services has intensified, making Hathora's infrastructure more valuable for AI calculations than gaming

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Source: PCWorld

Source: PCWorld

Frost Giant Studios Scrambles to Implement Offline Mode

Frost Giant Studios announced the unfortunate news via Discord on March 31, explaining that Stormgate will be "patched so that it can be played offline" before the server shutdown

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. The lack of an offline mode has been a community complaint for some time, with developers previously stating it wasn't a "main focus"—until now

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. The studio stated they "hope to restore online play in a future patch," but this work depends on finding a partner to support ongoing operations

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. The game, which raised over $2.3 million through Kickstarter in 2023, currently holds a "Mixed" rating on Steam, with more recent reviews trending "mostly negative"

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Broader Consequences for Gaming and Hardware Costs

This incident represents another way the AI industry reshapes gaming beyond the already documented hardware costs and GPU shortages. Gamers have watched AI initiatives make components unaffordable and fill game stores with low-effort content

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. Console prices are rising years after launch in an unprecedented reversal, while Nvidia reportedly skips new consumer GPUs for the first time in decades, focusing instead on industrial AI sales

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. The insatiable need for servers driven by generative AI has now forced a game to eliminate its online modes, potentially signaling a troubling trend

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. Industry observers suggest smaller game developers may need contingency plans for multiplayer components, potentially reverting to player-to-player connections as fallback options when repurposed for AI needs scenarios arise

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