People Can Fly Cancels Projects and Lays Off Staff Amid Publisher Issues

People Can Fly, the Warsaw-based game developer behind titles like Bulletstorm and Outriders, has recently faced significant setbacks. The studio announced the cancellation of two in-development projects, codenamed Gemini and Bifrost, accompanied by a round of layoffs. This decision marks a difficult moment for the company as it seeks to regroup and scale down its teams.

The root cause of these cancellations appears to be complications with the project's publisher, widely understood to be Square Enix. People Can Fly’s CEO, Sebastian Wojciechowski, cited a failure to receive necessary publishing agreements and a lack of clear communication about the publisher's commitment to continuing development. Additionally, issues with the publisher's cash flow raised doubts about securing the resources needed to complete the projects.

This is not the first time People Can Fly has encountered challenges with these projects. Back in December, the studio suspended production on a project codenamed Victoria and reduced the team working on Bifrost, signaling ongoing difficulties. The current announcement confirms that these issues have culminated in the suspension of Gemini and Bifrost altogether.

Despite these setbacks, People Can Fly continues to contribute to the gaming industry. The studio remains a partner on Xbox’s upcoming Gears of War: E-Day, collaborating with The Coalition. This ongoing partnership highlights the studio’s resilience and ability to maintain key industry relationships even amid internal challenges.

Navigating Publisher-Developer Dynamics

The situation with People Can Fly underscores a critical challenge in the game development ecosystem: the dependency on publishers for funding and clear communication. When publishers face financial instability or fail to provide timely agreements, developers bear the brunt, often resulting in project delays, cancellations, and workforce reductions.

For studios, this highlights the importance of robust contract management, contingency planning, and maintaining diversified partnerships. It also raises questions about how developers can better protect their teams and projects from the ripple effects of publisher instability.

Looking Ahead

While the cancellations are a setback, People Can Fly’s ongoing work on Gears of War: E-Day demonstrates adaptability and resilience. The studio’s experience serves as a case study for the broader industry on the risks tied to publisher relationships and the need for strategic agility.

In an industry where creative vision meets complex business dynamics, understanding and managing these relationships can make the difference between success and disruption.