Embracer Group, the Swedish holding company currently undergoing restructuring, has reportedly cancelled a Deus Ex game. According to Bloomberg, developers had been working on the unannounced title for two years.
While neither Embracer nor developer Eidos addressed the reported cancellation specifically, they did confirm the layoff of 97 employees at Deus Ex developer Eidos Montreal. Eidos will reportedly shift its focus to developing “an original franchise.”
Bloomberg’s sources indicate that the Deus Ex game was scheduled to begin production later this year. The franchise’s most recent mainline instalment was 2016’s Deus Ex: Mankind Divided.
Embracer Group, which aggressively expanded through acquisitions during the pandemic, entered a turbulent period last year.
In June 2023, the company announced a restructuring plan after an unnamed partner withdrew from a planned deal that would have brought in $2 billion over six years. Axios later reported that the mysterious investor was Savvy Games Group, which is funded by the Saudi government.
Embracer Group further faced setbacks in August when it announced the closure of Volition, the studio behind the popular Saints Row series.
In September, the parent company laid off approximately 900 employees, followed by an additional 50 workers at Fishlabs, the developer of Chorus. Earlier this month, Embracer also shuttered Lost Boys Interactive, the makers of Tiny Tina’s Wonderland, citing the “headwinds facing the industry right now.”
Embracer has stated that the restructuring phase will continue until the end of March. The company has pledged to provide regular updates on the process, including the publication of its next quarterly report on February 15.
Alongside the alleged cancellation of the Deus Ex game, Eidos confirmed the layoff of 97 employees from various development teams, administration, and support services. In a statement, Eidos acknowledged the impact of the global economic context, industry challenges, and Embracer’s comprehensive restructuring on their studio.