Creators of smash hit game Moshi Monsters to quit Brighton as redundancies announced

Mind Candy is shutting down its North Road office and moving all remaining staff to their London base in Shoreditch.

The company was one of the success stories of the gaming industry with 2008's Moshi Monsters attracting more than 80 million users.

However, it failed to follow up on the hit game with their recent release World of Warriors not performing as bosses expected.

Michael Acton-Smith, the founder and former chief executive of the company, said yesterday that there would be redundancies. However, he said it was not clear how many of the Brighton office's 26 employees would lose their jobs.

Despite the bad news, industry experts have backed the city to retain its reputation as being a hotspot for games developers.

Phil Jones, from the Wired Sussex business group, said: "New research shows that the cluster in Brighton is getting bigger, more profitable and more productive. The staff at Candy Labs are highly skilled and also great entrepreneurs. I am sure they will add value to the city in new ways sometime soon.”

Mind Candy was set up in 2003 and hit the big time with their internet-based game Moshi Monsters in 2008.

More than 80 million signed up to take control of a series of virtual pet monsters, making the company tens of millions of pounds.

Despite their main base being in Shoreditch, designers in Brighton were largely credited for the game's success.

But with the increased popularity of smartphones, the company shifted its focus to the mobile phone sector and has never been able to replicate their early success.

Their most recent game, World of Warriors, which Mr Acton-Smith said the company had spent "millions" on, had done "OK" but "not to the level which we were hoping".

In a statement a company spokeswoman said: "Mind Candy is currently in the process of bringing its whole team back together under one roof at its London HQ. It has been great having a base in Brighton, but we feel the time is right to have all of our employees in the same space going forward."

Speaking to industry website gamesindustry.biz, founder Mr Acton-Smith said making redundancies was a "horrible" thing to do.

He praised his Brighton team for their work on World of Warriors, which in May had made nearly £4 million with 5.5 million downloads.

However, he said the performance of the game had not reached what had been forecast.

He said the company would now downsize and relaunch Moshi Monsters in 2017.

BRIGHTON WILL STILL RETAIN ITS SPOT AT TOP OF GAMING INDUSTRY

Industry experts have backed Brighton to retain its reputation as a gaming hotspot despite the loss of one of the city’s top companies.

Mind Candy is closing its North Road office and relocating all remaining staff to their London headquarters.

David Amor, who set up Brighton gaming company Delinquent, said investors still consider the city as a great place to start up.

He said: “It’s a shame to see Mind Candy move out of Brighton but while the company might leave, the talent will stay. 

“I look forward to seeing what the team does next. 

“We’re lucky to have a high concentration of game companies in the area and I know from first-hand experience that investors see Brighton as a great place to start and grow a business.”

Phil Jones, from Wired Sussex, agreed, adding that recent research points to growth in the sector.

He said: “The new Brighton Fuse research findings show that the cluster in Brighton is getting bigger, more profitable and more productive.”

He added: “But digital is a disruptive, fast moving sector and it is inevitable that some businesses will succeed and others won’t. The staff at Candy Labs are highly skilled and also great entrepreneurs. I am sure they will add value to the city in new ways sometime soon.”

Richard Vahrman, from Hove-based educational games company LocoMatrix, said the city is still a great place for those looking to make their way in the industry.

He said: “It is a very friendly place and it is very easy to get in touch with someone who is in the same or a similar field.

“There are also lots of really good groups such as Wired Sussex and Brighton New Media.

“It has changed a lot. When I first came it wasn’t as friendly and people kept themselves to themselves.

“There is a lot more sharing of ideas and skills now.”