Tollan Universe developer Foretold Studios failed to pay several employees for months of work, plunging some of them into debt.
Several former employees told Game Developer that the studio skipped numerous salary payments, engaged in questionable hiring practices, and suffered damages due to mismanagement.
Despite these issues, the studio is apparently moving forward with development of Tollan Universe, an “adventure game ecosystem” consisting of two titles in Worlds of Tollan AND Survivors of Tollan, the first of which initially incorporated web3 elements.
Discussing their situation with Game Developer, former Foretold artist Arkadi Allakhverdiev explained that they joined the studio in September 2023. Initially, they received a month's salary and then the problems began. “In my case [the missed wages] started in the second month. I basically only got paid for the month of October,” they said.
Foretold management approached Allakhverdiev at that stage to explain that the studio was in financial trouble, but he seemed optimistic about the prospect of securing additional funding. Since he had financial buffers in place, Allakhverdiev agreed to forgo some salaries in the hope that other employees would be paid. He never received a full salary payment again.
“That decision was mine and I don't regret it, but I didn't expect the financial situation to last this long,” he said. “The financial situation got so bad that one of the people in the company had to ask for a loan, and that's when I started to get nervous.
“As an independent company, it was not [entirely] surprisingly because there are some challenging throws for the small games and so I wasn't personally alarmed. Then around the third month [of my employment] We were supposed to have a big investment. Unfortunately, it never came and we got basically nothing until I left.”
Foretold management has transformed the studio into a driverless car
Allakhverdiev said there was a sense that Foretold, under CEO Michael Kuvshynov, was akin to a driverless car. While he did not believe there was any “malicious intent” on the part of management, he said Kuvshynov failed to communicate effectively with staff about why salaries were not being paid and how the issue would be resolved.
“This has become a huge problem internally,” Allakhverdiev said. “No one was prepared for the financial crisis that occurred. [almost] immediately as we all started working. After we started having the [wage] problems we tried to stay positive but the more it went on [on]the more everyone's morale sank.
“What saddens me is that if we had had adequate funding from the beginning, everything would have been fine and there would have been no management problems due to stress, no one would have left and the game would have been fantastic.”
Despite his belief that Kuvshynov did not set out to deceive workers, Allakhverdiev said it was his job as CEO to effectively handle the situation. That never happened. Allakhverdiev left Foretold in April 2024 after a call with management, but has yet to receive or sign an official termination agreement. He was owed $8,700 as of April 2024, but he said he may be owed more since he was never officially fired.
Another former Foretold employee who chose to remain anonymous corroborated Allakhverdiev’s testimony. He is currently owed $2,700, representing two months’ salary, and explained that the lack of income has driven them into debt.
They said Kuvshynov never indicated that the studio would face financial hurdles. Instead, Kuvshynov said Foretold had a “group of investors” lined up. The money never materialized.
“Michael told me that they had a lot of investors and a lot of money to fund the game, but after only one month of payment [our wages]“He told us there would be a month-long delay in payment, which then turned into no payment for several months and an attempt to lower our previously agreed salaries,” they added.
Specifically, they said Foretold tried to hire new employees while still owing pay. “I know he has at least attempted to hire people even without paying current employees,” they said. “I don’t know what he’s saying to these new hires and I don’t even know if he’s ever paid them.”
Others were also burned. Agnieszka, who worked at Foretold for about four months before leaving, said she still owes $5,000. They suggested that leaders within the studio didn’t indicate it was struggling financially until it was too late. Even then, they said employees were told the cash shortage would be “temporary.”
“I was aware of the financial problems a little earlier than most of the team because I was unfortunate enough not to receive my October award. [2023] payment. Michael had entered the wrong account number and the money kept being transferred between banks,” they explained.
“Normally, the employer would send the money back and wait for the funds to be returned by the bank. However, he did not have the money to do so. I must admit that I finally got paid for October in early January, when he received the lost money from the bank. I never received money for November, December or January.
Foretold Employee Forced to 'Beg' for Salary
Agnieszka, who asked that her last name be withheld from this report, said the situation led them to “beg” Kuvshynov for a $200 payment so they could cover basic expenses. Although he eventually sent the money, WhatsApp messages viewed by Game Developer show that Kuvshynov initially tried to pay them in cryptocurrency.
“I had no money for anything. Michael asked me what I needed it for. It was one of the most humiliating conversations I've ever had, begging for money for food he owed me,” they continued. “He promised he would pay everyone and that if anyone wanted to leave, they could leave and still get paid. It was hard to believe him and decide what to do, whether to quit and risk never getting paid for a month or keep working longer in the hope that an investor would show up.”
They believe some workers decided to stay in the hope of getting paid eventually, but suggested Foretold made a point of hiring younger talent who might be easier to manipulate. “Right after I joined (and got my first week's paycheck), a 19-year-old game designer asked me if I knew when we'd finally get paid,” they said. “I was confused. It turned out he'd never been paid and had been 'working there' for three months already.”
Agnieszka claimed that Foretold “hired” two people shortly before their departure, both of whom agreed to work for free, as long as they would be paid later.[Kuvshynov] He told people that there is no money, but that it will come soon. When he hired us, he didn't mention any money problem.”
Game Developer has reviewed multiple emails from Kuvshynov confirming that the studio was unable to pay thousands of dollars in salaries. Additional WhatsApp messages from Foretold product manager James Kucera to a source indicate that Foretold was at risk of bankruptcy. Kucera also suggested that he was owed money and had been taking on contract work to make ends meet.
While Foretold remains indebted to its employees, the studio recently announced another project set in the Tollan universe. During the OTK Games Expo in June 2024, Foretold unveiled a 2D action roguelike called Survivors of Tollan which will launch in early access in Q3 2024, officially turning Foretold into a multi-project studio. Its first project, Worlds of Tollanhas yet to be launched.
When asked for comment, Kuvshynov told game developer Foretold that “over the past 12 months we have had difficulties raising funds, which has prevented us from paying salaries to our team members.”
“However, from the beginning, we have been transparent with everyone about the situation and offered stock options as compensation for their work with us,” he added. “For those who were not interested in stock options and preferred to leave, we agreed to compensate them once we raised the funds. While they wait for us to raise the funds, we remain in close contact with them, answering all their questions and addressing their concerns.”
All three sources refuted these claims. They told Game Developer that Kuvshynov never said that Foretold would only be able to pay them for a month’s work before they joined the studio. They also said that while stock options were offered, it never seemed like a credible proposition, given that the studio was already in dire financial straits.
Game Developer is currently seeking further answers from Kuvshynov as to why he chose to hire more workers without the means to pay them, when our sources should expect to be paid, and why Foretold announced another project in June when it has so far been unable to pay its workforce.