Reports confirm Embracer Group's decision to cancel the development of a new Deus Ex game, coinciding with a wave of layoffs at Eidos Montreal. The last installment in the Deus Ex series was released in 2016, leaving the storyline open for a potential sequel, which was actively being developed by Eidos Montreal until this recent development.
Formerly known as THQ Nordic, Embracer Group is a prominent player in the gaming industry. However, the company has been dealing with a severe crisis following the loss of a $2 billion deal. Prior to the deal falling through, the company had acquired several new studios. However, the recent crisis prompted the publisher to shut down some of these studios and terminate projects as a cost-saving measure.
According to Bloomberg, an unannounced sequel to Deus Ex has been axed. The project had undergone two years of pre-production and was on the brink of commencing full production this year. The game was intended to follow the storyline of Deus Ex: Mankind Divided, although earlier rumors had hinted at the possibility of a co-op game. Following the announcement of the cancellation, Eidos Montreal officially confirmed the layoffs of 97 employees. The remaining staff at the studio will now focus on developing a new, original franchise that has yet to be revealed.
The layoffs at Eidos Montreal are the most recent in a series of workforce reductions announced by Embracer Group in recent months. Last year, the company laid off employees from several studios, including 3D Realms and Slipgate Ironworks, and completely shuttered some studios such as Volition Games, the developers of the latest Saints Row installment. This trend has persisted into the current year. Just days ago, the publisher disclosed plans to dismiss 50% of the workforce at Black Forest Games and a substantial portion of Lost Boys Interactive. There are also speculations about the potential closure of Elex developer Piranha Bytes by Embracer Group, although its fate remains unconfirmed.
2024 Commences with Layoffs and Game Cancellations
The regrettable layoffs and cancellations carried out by Embracer Group are indicative of a broader trend that has significantly impacted the industry in January. Notable instances include Unity's dismissal of approximately 1,800 employees, CI Games' reduction of 10% of its total staff, and Riot Games' release of 530 employees. Another prominent case is Microsoft's elimination of 1,900 positions following the Activision Blizzard acquisition, along with the cancellation of Blizzard's survival game Odyssey.