Rooster Teeth shut down, iconic Red vs Blue machinima maker is no more

After 20 years of Halo memes and RWBY 3D action, Rooster Teeth is saying goodbye.

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Today Rooster Teeth shared some sad news with fans: The production group has been shut down by parent WB Discovery. Rooster Teeth general manager Jordan Levin said this in a memo to loyal watchers.

"Since inheriting ownership and control of Rooster Teeth from AT&T following its acquisition of TimeWarner, Warner Bros. Discovery continued its investment in our company, content and community. Now however, it's with a heavy heart I announce that Rooster Teeth is shutting down due to challenges facing digital media resulting from fundamental shifts in consumer behavior and monetization across platforms, advertising, and patronage."

Rooster Teeth's closure isn't merely an end; it reflects broader business dynamics. Monetization shifts, platform algorithms, advertising challenges, and the ebb and flow of patronage-all these converging factors have led to many closures in the industry. While we learn about updates on programming day by day, we will share our plans for shows, franchises, partnerships, and merch soon and share those updates with teams internally and with the community on RoosterTeeth.com.

Levin says that the Roost team has not currently been affected, and that the Roost Podcast Network will continue onward. But it sounds like axe could fall at any time, and WB Discovery is interested in selling the group.

Rooster Teeth is responsible for some of the most iconic content on the internet, and was a major pioneer in machinima with its well-known Red vs Blue: The Blood Gulch Chronicles. I still remember when Red vs Blue was brand new, and how my buddies and I would huddle around the hulking CRT computer monitor watching the show...and then trying (badly) to recreate our own show inside of Halo: Combat Evolved.

Rooster Teeth's other popular show, RWBY, spans 9 seasons and each episode typically has millions of views on YouTube.

In a recent earnings call, WB Discovery executives touted "financial discipline" as the company delivered streaming profits with Max. Layoffs, cuts, cancellations, and division closures are a big part of this discipline--companies are dialing back costs and spending as much as possible to improve profit margins.

This is especially true in media, whether it be digital entertainment like streaming, or interactive entertainment like video games.