Returnal director Harry Krueger recently told Game Developer he’s determined to ensure Cosmic Division, the indie studio he founded in May 2026 to build gameplay-first experiences using a “lean and mean” philosophy, is capable of standing the test of time.
Specifically, he explained he chose to leave Returnal and Resogun developer Housemarque after 15 years to build what he describes as a “forever studio.” During his time at the PlayStation subsidiary—acquired by the Japanese hardware maker in 2021— Krueger said he learned a profound lesson he intends to take forward: “the game is the boss.”
“Everything ultimately exists in servitude of creating the best possible game experience. That often means leaving your ego at the door, and allowing the game itself to dictate what’s best. It’s important to aim for rapid and lightweight iteration, and be willing to test and refine ideas relentlessly until everything settles into a cohesive whole,” he said during an email exchange with Game Developer.
“It also means embracing uncertainty along the way. Games are a creative endeavor, and there’s no fixed formula for success. Some of the best features can emerge unexpectedly through happy accidents, experimentation, and adapting to surprises or constraints during development.”
Krueger added that huge budgets cannot replace good chemistry, and said Cosmic Division will prioritize recruiting the right characters in order to punch above its weight. “[At Housemarque] I also learned that the right people can act as a significant multiplier for creativity and momentum. No matter your budget, you cannot buy good chemistry, and even a relatively small team of highly aligned developers can accomplish extraordinary things,” he continued.
The Finnish studio currently comprises five employees, and while Krueger has lofty ambitions he doesn’t expect the team to ever expand beyond 50 members. “For our first project, we’ll likely be able to achieve our ambitions with a team significantly smaller than that,” he added.
He said it’s an approach that will allow Cosmic Division to balance flexibility and ambition to scale selectively when needed while keeping internal operations “agile, focused, and sustainable.”
There’s that word again. Sustainable. In recent years, the notion of “sustainable growth” is a phrase you hear thrown around when a company is making cuts. It’s rare a week goes by without a studio or publisher downsizing in the current climate, so how does Krueger intend to scale in an industry that feels downright hostile to developers?
“‘Lean and mean’ isn’t a PR tagline for us, it’s a foundational philosophy. I’d say our goal as a studio is to be ‘responsibly ambitious.’ The industry has gone through a difficult cycle of overexpansion followed by painful corrections, and we want to avoid contributing to that pattern. With Cosmic Division, we aim to shoot for the stars, but also keep our feet firmly on the ground,” he said.
“I believe it’s always easy for creative ambitions to spiral outward, and every project has the potential to become your magnum opus. But good design is ultimately about setting constraints, and I believe the same is true for running a studio, especially in its early stages of growth.”
“We see AI the same way we see any other technology: as a tool, not a savior”
Krueger offered a familiar refrain: that constraints foster creativity. He suggested that smaller teams are perhaps more capable of taking bigger creative swings if they can stay focused and adaptive. “Once projects grow beyond a certain size and expectations start piling up, it can become much harder to deliver on all fronts sustainably and without compromise. And too much compromise usually leads to mediocrity,” he continued. “In the end, more is not always better, often it’s just more.”
When asked how much financing he raised to establish Cosmic Division, Krueger said the company will be sharing more details about its partners and financial situation in the future. He stressed however, that the team will always budget in service of the game they’re building. “We want to pick our battles carefully, and avoid scaling beyond what the project genuinely requires,” he added.
As for whether other not Cosmic Division will leverage generative AI to accelerate production—a familiar refrain in some exec-laden corners of the industry—the newly-minted studio founder said the (often divisive) technology could perhaps become a useful tool but that it will never be a “savior.”
“For us, rapid iteration means that it should be easy to test ideas quickly, discard what doesn’t work, and double-down on what does. Smaller teams are naturally suited for that approach because decision-making is quicker and lighter, and ripple effects are easier to compartmentalize and manage. A lean team structure allows us to prototype, review, adapt, and course-correct without excessive process overhead,” he said.
“Games aren’t just systems—often we’re chasing a feeling, and trying to give shape to the intangible. It’s not always an exact science, and finding the fun and allowing the design to settle takes time. This is something that we intend to prioritize at Cosmic Division. It’s important to leave room for that iterative discovery process, rather than rushing prematurely toward scale.
“As for AI, it’s obviously one of the biggest discussions happening in the industry right now, and the conversation often swings between extremes. People who dismiss it entirely may miss useful opportunities, while those expecting it to solve every problem are likely to end up disappointed. We see AI the same way we see any other technology: as a tool, not a savior. It can accelerate certain workflows and reduce friction in some areas, but it’s not a replacement for creative vision, taste, or craftsmanship. We’re keeping an open mind and actively exploring the space, but we’re approaching it thoughtfully rather than dogmatically.”
Ultimately, Krueger hopes that Cosmic Division’s work will eventually speak for itself and said sustainability means creating a studio capable of enduring, where the craft of building video games is celebrated and ambition is balanced with responsibility.
“Throughout my career I’ve been fortunate enough to stand on the shoulders of giants, and lucky enough to work only on award-winning projects alongside some exceptional people. Now, Cosmic Division is my third job in the industry, and I’d like it to be my last,” he continued.
“The goal is to build the ‘forever studio,’ rather than chase aggressive growth or short-term wins. Practically that means growing slowly and responsibly, managing project scope carefully, maintaining a healthy runway, and being very deliberate about the people and partners we bring onboard. Especially while building our first project and the studio simultaneously, it’s important to be measured and not bite off more than we can chew.”