Embracer Group AB THQQF has reportedly canceled a two-year-in-development Deus Ex game and laid off staff at Eidos Montreal.
The unannounced third mainline entry in the Deus Ex series was expected to enter production later this year, but the developer, Eidos Montreal, will now focus on an original franchise instead, Bloomberg reported.
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The decision comes amidst a comprehensive restructuring at Embracer Group, impacting various studios, with Eidos Montreal confirming the layoff of 97 employees across development, administration, and support services.
"The global economic context, the challenges of our industry, and the comprehensive restructuring announced by Embracer have finally impacted our studio," Eidos Montreal said in a statement. "The difficult decision has been made to let go 97 people from development teams, administration, and support services."
Embracer Group, facing challenges and a shifting global economic context, has been aggressively shutting down studios following a rumored $2 billion deal with the Saudi-backed Savvy Games Group falling apart.
Studios affected include Saints Row developer Volition and Timesplitters developer Free Radical Design. Additionally, Elex developer Piranha Bytes is rumored to be facing closure and encountering difficulties in securing a partner for its next project.
Embracer Group, which acquired Eidos Montreal from Square Enix Holdings Co SQNXF in 2022 along with franchises like Tomb Raider and Deus Ex, has not officially commented on the cancellation of the Deus Ex game.
In dialogue with IGN, the company's spokesperson emphasized a local and employee-focused approach during the restructuring: "Embracer announced a comprehensive restructuring program for FY 23/24, running until end of March 2024. This process will be managed locally on operative group level with focus on informing affected employees first, and on group level we will not comment on specific studios."
Read Next: Embracer Group Announces 5% Workforce Cut: Studio Closures, Project Cancellations
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