Studio Restructuring: People Can Fly Faces Cancellations and Layoffs Amid Publisher Conflicts

Polish game developer People Can Fly has announced the cancellation of two undisclosed projects due to disputes with their publisher. This decision comes alongside a significant restructuring effort within the studio, which will unfortunately lead to job losses among its staff. The unpublished titles include Project Gemini, intended for release under Square Enix, and an untitled VR venture known internally as Project Bifrost. These cancellations are tied to financial and communication issues between People Can Fly and its publishing partners, marking a challenging period for the company as it navigates its future in the gaming industry.

The termination of Project Gemini stems from unresolved contractual disagreements with Square Enix. According to CEO Sebastian Wojciechowski, Square Enix failed to provide necessary documentation regarding milestone payments or communicate clearly about continuing or ending the project. Additionally, concerns over cash flow prompted the discontinuation of Project Bifrost, a virtual reality endeavor that lacked sufficient funding to proceed. This financial strain has necessitated workforce reductions, with more than 30 developers reportedly losing their positions last January.

This setback follows previous challenges faced by People Can Fly. Earlier this year, the studio scrapped another ambitious project called Project Dagger, a cooperative action RPG they had been developing independently after Take-Two Interactive ceased involvement. Such decisions reflect broader struggles within the company to balance creative ambitions with economic realities.

Despite these setbacks, People Can Fly remains committed to ongoing initiatives like Gears of War: E-Day for Xbox consoles and a mystery title based on PlayStation intellectual property. Founded two decades ago, the team behind hits such as Painkiller, Bulletstorm, and Outriders continues striving toward innovation while adapting to evolving market conditions.

As People Can Fly reshapes its structure and focuses resources on remaining ventures, the organization expresses deep regret over recent developments affecting employees. They remain grateful for all contributions made thus far and hope to emerge stronger through strategic adjustments moving forward.