Report: Embracer cancels Eidos’ unannounced Deus Ex project, lays off staff

Report: Embracer cancels Eidos’ unannounced Deus Ex project, lays off staff

Key art for Deus Ex: Mankind Divided.

Image via Eidos Montreal/Square Enix.

You didn’t ask for this: Eidos Montreal’s next Deus Ex game has allegedly been canceled by parent company Embracer. And that means an unspecified number of staff are being let go.

Per Bloomberg, the cancellation and resulting layoffs continue the Swedish company’s cost-cutting initiative from mid-2023. And it comes months after Crystal Dynamics was hit with its own reductions.

While the project’s cancellation hasn’t been fully confirmed, several Eidos staffers have corroborated the studio’s layoffs and said they’re looking for work.

Embracer acquired both companies and Square Enix Montreal in 2022 from the Final Fantasy publisher. All three were a package deal, and Eidos and Crystal Dynamics said they’d return to their respective franchises, Deus Ex and Tomb Raider.

The last title in the former series was Deus Ex: Mankind Divided all the way back in 2016. Production on the new game was said to start in full later this year.

With this new cancellation, Eidos Montreal’s last game will have been 2021’s Marvel’s Guardians of the Galaxy. It’s said the studio will now pivot to a wholly new property, the first in its 16-year tenure.

Game Developer reached out to Eidos Montreal for comment, and will update when a response is given.

Update: In a statement released on Twitter, Eidos Montreal confirmed it was caught up in Embracer’s larger restructuring. 97 employees were let go from admin, support, and development teams.

“The global economic context, the challenges of our industry…have finally impacted our studio,” it wrote.”

Notably, the developer didn’t mention anything about its Deus Ex project. Instead, it affirmed that it was focusing on “the well-being of our team.”

“Thank you for your continuing report and well wishes,” Eidos concluded.

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