Polish game developer People Can Fly faces another major setback as the studio behind Outriders and Gears of War Judgment announces the cancellation of two significant projects, citing failed publisher negotiations and cash flow concerns. The decision marks yet another challenging chapter for the studio, which has now seen multiple high-profile projects collapse over the past year.
Square Enix Partnership Breakdown Triggers Project Gemini Cancellation
The suspension of Project Gemini stems directly from a breakdown in communication with publisher Square Enix. CEO Sebastian Wojciechowski revealed that the publisher failed to provide a draft of the subsequent content rider to their Publishing Agreement, leaving the development team in limbo without clear terms for future milestones. This lack of communication regarding Square Enix's intentions to either continue or terminate the project ultimately forced People Can Fly's hand in making the difficult decision to halt development.
Project Gemini had already faced significant challenges earlier in 2024, including a reduced scope and the layoff of 30 developers. The project represented a continuation of People Can Fly's relationship with Square Enix following their collaboration on Outriders, making the breakdown particularly significant for the studio's future prospects.
People Can Fly Recent Project Status:
- Canceled Projects (2024): Project Gemini (Square Enix), Project Bifrost (Self-published VR)
- Canceled Projects (2023): Project Dagger (Take-Two)
- Active Projects: Gears of War: E-Day (Microsoft), Project Echo (Krafton), Project Delta (Sony)
- Recent Release: Bulletstorm VR (Meta Quest, PSVR2)
Cash Flow Analysis Forces VR Project Bifrost Suspension
Project Bifrost, the studio's planned final venture into virtual reality gaming, became collateral damage in the wake of Project Gemini's cancellation. The studio's analysis of group cash flow revealed insufficient prospects for securing the organizational resources and funding necessary to complete production and release. This self-published VR project was already operating under the studio's acknowledgment that the VR market remained too limited for sustainable development.
The cancellation of Bifrost reflects broader industry challenges with VR adoption, as even established studios struggle to justify continued investment in the platform despite technological advances.
Pattern of Project Failures Continues
This latest round of cancellations adds to People Can Fly's growing list of failed projects. Just over a year ago, the studio canceled Project Dagger, an action-adventure IP that was set to be published by Take-Two Interactive. The pattern suggests ongoing challenges in maintaining stable publisher relationships and securing long-term project commitments in an increasingly volatile gaming market.
The studio had previously scaled down operations at the end of 2023, laying off 120 workers, indicating that financial pressures have been mounting for some time.
Layoff Timeline:
- Early 2024: 30 developers laid off from Project Gemini
- End of 2023: 120 workers laid off during previous scaling down
- Current: Significant team reductions expected (numbers not disclosed)
Remaining Projects Offer Hope for Studio Survival
Despite these setbacks, People Can Fly maintains several active projects that could provide stability. The studio continues work on the highly anticipated Gears of War: E-Day for Microsoft, leveraging their experience with the franchise from Gears of War Judgment. Additionally, they're developing projects in partnership with Krafton and Sony, including an unknown game based on a Sony intellectual property.
The studio's most recent release, Bulletstorm VR for Meta Quest and PlayStation VR2, demonstrates their continued ability to deliver finished products despite organizational challenges.
Significant Workforce Reductions Expected
CEO Wojciechowski's statement emphasized that the most painful aspect of these cancellations involves scaling down teams significantly. While specific numbers haven't been disclosed, the impact is expected to be substantial given the scope of the two canceled projects. The CEO expressed deep regret over the situation and gratitude for team members' contributions, highlighting the human cost of these business decisions.
The gaming industry continues to face widespread layoffs and project cancellations as publishers become increasingly risk-averse in uncertain economic conditions, making People Can Fly's situation part of a broader industry trend rather than an isolated incident.