Goonswarm Games Shuts Down Following POSTAL: Bullet Paradise Cancellation Amid AI Controversy

The studio **Goonswarm Games**, known for their work on [**POSTAL: Bullet Paradise**](https://www.example.com/game/postal_bullet_paradise), is set to **close down** following the cancellation of the game by the publisher due to allegations of using generative artificial intelligence.

The controversy began after the release of the **POSTAL: Bullet Paradise** trailer, with many players speculating that some graphical elements might have been created using AI. Initially, the publisher, **Running With Scissors**, defended the developers, and co-founder **Mike Jaret-Schachter** even labeled the accusers as «ignorant fools» on their Discord server. The studio’s community manager also made disparaging remarks towards gamers questioning the «authenticity» of the visuals.

In an effort to prove their point, the developers shared working files to demonstrate that the graphics were crafted manually. They asserted that generative AI was not involved and that all materials were created by artists using conventional tools.

However, after facing a significant backlash, the publisher **Running With Scissors** stated it had «lost trust» in **Goonswarm Games**, ultimately leading to the official cancellation of the project. The studio mentioned in a statement that the controversy surrounding the new **POSTAL** title inflicted «severe damage» on the brand and the company’s reputation.

Consequently, **Goonswarm Games** announced the complete shutdown of the studio, despite continuing assertions that AI had not been utilized in the game content.

Interestingly, just a day after the initial statement, the studio **acknowledged** that some promotional art did indeed include elements generated by AI. The developers clarified that this did not pertain to the main game graphics, which were created by their team, and expressed regret towards everyone affected by the situation.

Dear gamers, we want to begin with heartfelt apologies to all those impacted by this situation—our community, our partners, and especially the artists who have supported us.

The past few days have been incredibly stressful. As a small studio suddenly thrust into the spotlight, we reacted emotionally and defensively. The accusations were shocking, and we needed time to take a deep breath, assess everything calmly, and understand what truly transpired.

Following our internal review, we acknowledge your criticisms. The promotional art may indeed have elements created with AI or be partially inspired by it. We have collaborated with external artists for years without noticing any signs of this. The PSD files always appeared correct within our internal system, so our initial response was geared towards defending our team and asserting our innocence. We now realize that your concerns were valid, and we accept responsibility for not recognizing this sooner.

We also want to emphasize that this issue pertains solely to the promotional art and does not involve the artists who worked on the visual effects, assets, and other game content. Many of them have no connection to this situation but have still faced threats, harassment, and hatred. This is profoundly unfair, and we hope this message helps protect them. Their work is genuine and deserves respect.

We previously announced the studio’s closure, but even in this state, we feel accountable for the consequences. As we are able, we will replace all contentious promotional art in our projects with content created entirely by real artists. It will take time, but we will follow through on this promise.

Once again, we apologize to everyone affected by this situation. We never intended to mislead anyone, and our previous statements reflected what we sincerely believed at the time.