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Developer of New Postal Game Shuts Down Studio After Game Was Announced, Then Canceled Over Gen AI Allegations

Publisher cites extreme brand damage from fan accusations of AI-generated assets, leading to cancellation and developer studio closure after six years of work.

  • Following the reveal on Wednesday, Goonswarm Games announced its shutdown after Postal: Bullet Paradise was canceled over alleged AI use, posted on Twitter.
  • Community scrutiny of the trailer revealed Postal subreddit fans and observers flagged odd assets and pixel-sprite mouths and noted hallmarks they said indicated generative AI, though Goonswarm Games and Running With Scissors initially denied these allegations.
  • The trailer was removed from YouTube while the Steam page remained viewable, and Goonswarm told PCGamesN `No generative AI was used for the reveal trailer or for the game` as Running With Scissors cited `extreme damage` from feedback.
  • Goonswarm announced the closure, saying threats and insults forced it to shut down and apologizing to artists caught in false AI accusations, while fans hoped another developer would salvage the project and Running With Scissors plans new projects in 2026.
  • The Postal franchise's recent output shows Running With Scissors released multiple spinoffs in recent years, while Postal 4: NoRegerts scored a 2/10 and Postal: Bullet Paradise promised 11 unlockable Postal Dudes.
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Editor Running With Scissors cancelled the newly announced POSTAL: Bullet Paradise after receiving criticism for the use of content generated with artificial intelligence

·Buenos Aires, Argentina
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Gamespot broke the news in United States on Friday, December 5, 2025.
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