Swedish gaming company Embracer Group AB is canceling a video game within the acclaimed Deus Ex series after two years of development, leading to the layoff of several employees as part of its cost-cutting initiative, according to insider sources.

The canceled Deus Ex project was slated for production later this year. Eidos, the Montreal-based gaming developer, will concentrate on a original franchise instead, according to Bloomberg. After growing throughout the pandemic, Embracer Group, which purchased Deus Ex in 2022, has been laying off workers, canceling games, and closing studios.

What Happened?

In a statement, Eidos Montreal announced the Deus Ex project cancellation and the job loss of 97 people. The decision is attributed to the global economic context, industry challenges, and the comprehensive restructuring announced by Embracer. The studio expressed pride in its 17-year history of creating beloved and innovative games, emphasizing its commitment to supporting the affected personnel.

"We are working to support all impacted personnel through this transition. These very talented, highly experienced people are entering the employment market, and we want them to find their next projects and are helping to do so," the company stated, per Eurogamer.

Voice actor Elias Toufexis, who portrayed Adam Jensen in Deus Ex, said he had not been asked for a return, indicating the scrapped game centered on new characters or periods, according to PCGamesN.

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Ever since its supposed $2 billion deal with Saudi-backed Savvy Games Group fell through, Embracer Group has aggressively dissolved its studios, IGN reported. It has closed Saints Row developer Volition and Timesplitters developer Free Radical Design. Elex developer Piranha Bytes is likewise struggling with reports of a possible shutdown and problems finding a partner for its upcoming project.

Layoffs Across the Gaming Industry to Continue

This year has witnessed multiple companies announcing layoffs, including Riot Games, Black Forest Games, Unity, Behaviour Interactive, Lords of the Fallen publisher CI Games, and Microsoft, which announced 1900 layoffs across its video game teams.

Microsoft's gaming head, Phil Spencer, called the job cuts a "painful decision." The broader industry reflects these challenges, with GDC reporting in its 2024 State of the Game Industry report that 35% of game developers experienced layoffs in the last 12 months, and half expressed concerns about potential future layoffs.

In the video game industry, layoffs have increased in recent years. Industry-wide layoffs occurred almost weekly in 2023, and at least 6,000 job losses occurred in publishers, developers, and other video game firms. Based on the trends in recent weeks, it seems like 2024 will surpass that, which is unfortunate, per Kotaku.

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