People Can Fly Cancels Project Gemini and Bifrost Amid Layoffs Due to Publisher Disagreements in 2025

People Can Fly, the Polish studio behind Outriders and Gears of War: Judgment, has canceled two major projects, Project Gemini and Project Bifrost, due to publisher disagreements with Square Enix and financial constraints. The decision, announced on June 1, 2025, has led to layoffs, impacting an undisclosed number of developers. This marks the studio’s second round of job cuts in less than a year, following 120 layoffs in December 2024. As India’s gaming industry grows by 20% annually, these events highlight challenges in global game development.

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Project Gemini and Project Bifrost: Canceled Projects

Project Gemini, a Square Enix-published title rumored to be an Outriders sequel, and Project Bifrost, a self-published VR game, have been indefinitely suspended. The cancellations stem from lack of communication and funding issues with the publisher.

  • Project Gemini: Action RPG, co-developed with Square Enix, focused on co-op gameplay.
  • Project Bifrost: VR adventure, aimed at next-gen platforms, fully funded by People Can Fly.
  • Reasons: Publisher disagreements, insufficient funds, poor market prospects.
  • Status: Development halted, assets potentially repurposed.

X posts express disappointment, with fans lamenting the loss of a “promising sequel” (@HazzadorGamin).

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Publisher Disagreements with Square Enix

The publisher disagreements between People Can Fly and Square Enix centered on lack of communication and strategic misalignment. The studio cited financial challenges as a key factor in halting both projects.

  • Issues: Delayed approvals, budget disputes, unclear project scope.
  • Impact: Project Gemini lost publisher support, leading to cancellation.
  • History: Previous tensions during Outriders development, per developer statements.
  • Outcome: Square Enix and People Can Fly part ways on Gemini.

X posts criticize Square Enix’s “mismanagement” (@Grummz).

People Can Fly’s Project Gemini & Bifrost Canceled
People Can Fly’s Project Gemini & Bifrost Canceled

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Layoffs: Impact on Developers

The layoffs at People Can Fly affect developers across Project Gemini and Project Bifrost teams, with the studio expressing “deep regret.” This follows 120 job cuts in December 2024, signaling ongoing financial strain.

  • Scope: Undisclosed number of employees affected, likely dozens.
  • Support: Severance packages, career transition assistance offered.
  • Context: Global gaming layoffs hit 3,900 in 2024, per industry reports.
  • Future: Studio to focus on Gears of War: E-Day and smaller projects.

X posts show sympathy for affected developers (@InsiderGamingIG).

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Ongoing Projects: Gears of War and Beyond

Despite the cancellations, People Can Fly continues work on Gears of War: E-Day, a Microsoft-published prequel, and other unannounced projects. The studio aims to stabilize operations after the layoffs.

  • Gears of War: E-Day: Third-person shooter, set for 2026 release.
  • Team Size: Core team retained, unaffected by layoffs.
  • New Projects: Small-scale titles in early development.
  • Strategy: Shift to lower-risk ventures, per studio statement.

X posts are optimistic about Gears of War’s progress (@pcgamer).

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Comparison Table: Canceled Projects vs Ongoing Work

FeatureProject GeminiProject BifrostGears of War: E-Day
PublisherSquare EnixSelf-publishedMicrosoft
GenreAction RPGVR AdventureThird-person Shooter
StatusCanceledCanceledIn Development
PlatformPC, ConsolesVR HeadsetsXbox, Game Pass
ReleaseN/AN/A2026
Team ImpactLayoffsLayoffsUnaffected

Source: Compiled from studio announcements and industry reports.

Market Impact and Challenges

India’s gaming industry, valued at $3.1 billion in 2024, thrives on mobile and PC gaming, but global studio challenges like those at People Can Fly signal risks. The layoffs and cancellations reflect rising development costs and publisher pressures.

  • Strengths: People Can Fly’s expertise in shooters, loyal fanbase.
  • Challenges: Financial instability, publisher disputes, VR market risks.
  • Impact: Potential delay in Indian market expansion for Outriders IP.

X posts highlight broader industry layoffs, urging support for devs (@Kotaku).

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Why People Can Fly’s Cancellations Matter

The People Can Fly cancellation of Project Gemini and Project Bifrost, coupled with layoffs, underscores the volatile nature of game development. Publisher disagreements with Square Enix and financial hurdles have forced tough decisions, impacting developers and fans. As India’s gaming community grows, stay updated via peoplecanfly.com or gaming news platforms.

FAQs: People Can Fly Project Cancellations

1. What projects did People Can Fly cancel?

People Can Fly canceled Project Gemini (action RPG) and Project Bifrost (VR game),

2. Why were the projects canceled?

Due to publisher disagreements with Square Enix and financial issues, per IGN.

3. Were there layoffs at People Can Fly?

Yes, layoffs impacted developers from both projects, following 120 job cuts in 2024, per Gadgets360.

4. What is People Can Fly working on now?

The studio focuses on Gears of War: E-Day, set for 2026, per Rock Paper Shotgun.

5. How does this affect India’s gaming market?

It highlights global development risks, but India’s gaming grows 20% annually, per Counterpoint Research.

Sources

Disclaimer

This article is based on publicly available information from media reports, studio announcements, and social media insights. While we aim for accuracy, details like layoff numbers, project specifics, and future plans may change. For the latest information, please visit the listed sources or People Can Fly’s official website.

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