Polish developer People Can Fly, best known for action-packed titles like Outriders and Bulletstorm, has officially cancelled two major in-development projects: the Square Enix-published Project Gemini and the internally funded VR title Project Bifrost. The decision marks a significant moment of transition for the studio, which is also undergoing another wave of staff layoffs.
The Fall of Project Gemini
Project Gemini was one of People Can Fly’s most ambitious undertakings a AAA title backed by Square Enix and positioned as a spiritual follow-up to Outriders. Despite its potential, the project never made it past the mid-development stage. According to an official statement from People Can Fly, the cancellation stemmed from Square Enix’s failure to finalize a publishing agreement and their lack of clear communication about the project’s future.
“The publisher was not ready to provide any publishing agreements, and our team was left with no visibility regarding the project’s fate,” the company said.
The situation underscores the growing tension between developers and publishers, particularly in an era where development cycles are longer, risk is higher, and transparency is more critical than ever.
Bifrost: The Last VR Push
In addition to Gemini, People Can Fly has also shelved Project Bifrost, a self-published virtual reality title that had been quietly in development. The cancellation wasn’t entirely unexpected. Earlier in the year, the studio announced it was phasing out VR game publishing entirely Bifrost was meant to be their last hurrah in that space.
Internal analysis revealed that Bifrost lacked the financial and organizational backing to move forward. The studio cited limited funding prospects and challenges scaling up VR production as key factors in its decision to halt development.
This signals a full retreat from VR for the studio, a space they had dabbled in but never fully committed to. With Bifrost gone, People Can Fly has officially closed that chapter of its creative output.
Layoffs and Restructuring
The dual cancellations have had immediate internal consequences. People Can Fly confirmed a new wave of layoffs, affecting a yet-undisclosed number of developers. This marks the studio’s third project cancellation in just over a year, and the second round of layoffs in six months.
While the studio has not disclosed how many team members were affected, the implication is clear: People Can Fly is scaling back, regrouping, and reassessing its strategic direction. In a volatile industry where development costs continue to soar and risk is ever-present, these changes may be necessary but they come at a cost.
Looking Ahead: What’s Still in Development
Despite the turmoil, People Can Fly isn’t shutting down. The studio remains engaged in several other projects, including collaborations with major publishers. Most notably:
- Project Delta: Currently being developed in partnership with Sony Interactive Entertainment. Details remain under wraps, but it’s expected to be a large scale, narrative driven action game.
- Gears of War: E-Day: The studio is also collaborating with The Coalition on this upcoming installment in the legendary Xbox franchise.
These ongoing projects suggest that while People Can Fly is experiencing a rough patch, it’s far from out of the game. The studio appears to be refocusing on fewer, higher-stakes projects with strong publishing partners possibly a sign of lessons learned from the Gemini fallout.
Industry Takeaway
The cancellations of Project Gemini and Bifrost highlight several growing pains within the games industry. For mid-sized studios like People Can Fly, balancing creativity with financial sustainability is becoming increasingly complex. Publisher relationships, once seen as a safety net, can quickly become a liability if communication breaks down or visions diverge.
Meanwhile, the retreat from VR underscores broader industry sentiment: the medium, while promising, has not yet proven to be a reliable or lucrative pillar for most developers.
Still, with major collaborations on the horizon and a hard reset now in place, People Can Fly has the opportunity to rebuild perhaps smaller, but potentially stronger and more focused than before.
1-Up Games 