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People Can Fly Cancels Near-Finished Sequel Outriders 2

The studio is reallocating talent to co-development roles on Gears of War: E-Day under a new strategic pivot following funding disputes with Square Enix.

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Overview

  • Outriders 2, codenamed Project Gemini, was nearing completion when work was suspended and then canceled in early June due to payment and communication disputes with Square Enix.
  • Motion capture for the third-person shooter was underway at the time of cancellation, marking an unusual late-stage termination in AAA game development.
  • The original Outriders launched in 2021 with over 3.5 million unique players and high engagement but struggled to sustain revenue without live-service features.
  • Square Enix’s three-year plan to double down on its biggest franchises and limit riskier external IP investments influenced the decision to pull support for the sequel.
  • Following layoffs, People Can Fly has redeployed staff to co-development on Gears of War: E-Day and forged partnerships with Krafton and Sony to sustain operations.