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Square Enix Cancels Outriders 2, Triggers Layoffs at People Can Fly

Publisher disputes over payment, missing assets, communication breakdowns motivated Square Enix to kill the near-complete sequel, prompting People Can Fly to slash jobs, pivot to co-development partnerships

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Overview

  • Square Enix formally axed Project Gemini in early July, confirming that Outriders 2 was canceled after work was suspended in June.
  • Development stalled over Square Enix’s failure to deliver critical assets and maintain payment schedules despite ongoing motion capture sessions.
  • Insider reports conflict on project progress, with some sources saying the sequel was nearly finished and others indicating it was far from release readiness.
  • People Can Fly implemented significant layoffs in early June as it wrote off two unannounced projects, including the Outriders 2 sequel.
  • The Polish studio has since refocused on co-development work, joining Microsoft’s Gears of War: E-Day, an unannounced Sony IP project and Krafton’s Project Echo.