Returnal director Harry Krueger has launched Cosmic Division, a new indie studio focused on sustainable growth and AI-driven development.
Returnal director Harry Krueger has launched Cosmic Division, a new indie studio founded in May 2026 with the goal of building a "forever studio" that avoids the boom-and-bust cycles common in the game industry. Krueger, a veteran of Housemarque, is applying a "lean and mean" philosophy to his new venture, emphasizing rapid iteration, sustainable growth, and the potential use of generative AI tools to streamline development.
Cosmic Division's 'Forever Studio' Vision
Krueger left Housemarque after 15 years to start Cosmic Division, a studio he describes as a "gameplay-first" operation built around the idea that "the game is the boss." The studio currently has five employees and plans to remain under 50 members to maintain agility and creative focus. Krueger believes that smaller teams can take bigger creative risks if they stay adaptable and focused.
He emphasized that the studio’s goal is to avoid the industry’s typical cycles of overexpansion and painful corrections. "We want to be 'responsibly ambitious,'" Krueger said. "We aim to shoot for the stars, but also keep our feet firmly on the ground."
Confirmed vs. Speculative
Krueger has not confirmed the exact nature of Cosmic Division’s first project, nor has he revealed the amount of funding raised to start the studio. He did say the company will share more details about its partners and financial backing in the future. While the studio may explore generative AI tools, Krueger stressed that AI will be used as a tool—not a "savior"—for development.
The studio’s lean structure allows for quick decision-making and iterative design, which Krueger believes is essential for creative success. "A lean team structure allows us to prototype, review, adapt, and course-correct without excessive process overhead," he said.
