The digital entertainment landscape took a hit today with the announcement that after two decades, Austin-based online studio Rooster Teeth is shutting down. In a memo to staff on Wednesday, Rooster Teeth General Manager Jordan Levin detailed the reasons behind the decision. According to a post on the studio's website reported by KVUE, Warner Bros. Discovery, which now owns Rooster Teeth, made the decision due to "challenges facing digital media resulting from fundamental shifts in consumer behavior and monetization across platforms, advertising, and patronage."

The beloved internet company, known for its web series content like the action-comedy machinima "Red vs. Blue," is set to quickly complete its final season before closure. Fans are left to process the end of an era in online entertainment with the livelihoods of Rooster Teeth employees also hanging in the balance. In a statement obtained by KVUE, Levin stated, "Our legacy is not just a collection of content but a history of pixels burned into our screens, minds, and hearts."

Rising from a garage in Buda, TX, Rooster Teeth expanded broadly, encompassing games, films, podcasts, and live events like the annual RTX convention. The Roost podcast network, as clarified by Levin, remains active for now, pending evaluation of outside interest in the asset by Warner Bros. Discovery. ComicBook.com quotes the memo from Jordan Levin, "In the coming days and weeks, we will have many questions to answer and the opportunity to work together to implement the best way to wind things down for us and our community."

A livestream discussing the closure is due to happen on March 7, as noted on the Rooster Teeth website. This offers potentially the final chance for fans and staff alike to publicly engage with the company's management before the digital curtains close. An era-encapsulating community built around original IP, games, and fan-driven content is to be left behind, forging valuable memories and impactful storytelling in the digital age. According to a ComicBook.com release of the memo, Levin expressed homage to the community, "Despite passing through many corporate owners, Rooster Teeth transcended a media business and was a dynamic movement that shaped the bond between communities, creators, and storytelling."

As the studio gears up to close its doors, the impact on the Rooster Teeth community and the broader digital media landscape remains to be fully seen. The implications of such a longstanding company shutting down reflect underlying industry-wide challenges as digital consumption and monetization continue to evolve.