As of now, there is no official public statement from Devolver Digital (often referred to as "Dev") directly blaming Square Enix for the cancellation of Outriders. However, there has been significant speculation and fan discussion surrounding the cancellation of Outriders 2, which was originally developed by People Can Fly and published by 2K Games, not Square Enix. To clarify the confusion: Outriders (2020) was developed by Rogue Entertainment and published by Square Enix. Outriders 2 was in development by People Can Fly and was intended to be published by 2K Games, a subsidiary of Take-Two Interactive, not Square Enix. The cancellation of Outriders 2 in 2023 was officially announced by 2K Games, not Square Enix. Devolver Digital has no involvement in the Outriders series. So, to correct the premise: Devolver Digital did not blame Square Enix over the cancellation of Outriders. The cancellation of Outriders 2 was due to internal decisions at 2K Games, not Square Enix, and no such public blame has been issued by Devolver. If you're referring to rumors or social media speculation, it's possible that fans have conflated developers, publishers, or misattributed statements. Always verify through official sources like press releases from 2K Games, Square Enix, or Devolver Digital. In short: ❌ No, Devolver Digital did not blame Square Enix. ✅ The cancellation was linked to 2K Games, not Square Enix. ✅ Devolver Digital is not involved in the Outriders franchise. Let me know if you’d like a timeline of the cancellations or background on the teams involved.

The recent announcements from People Can Fly underscore a turbulent period for the studio, marked by strategic setbacks, financial strain, and further workforce reductions. Following the cancellation of two high-profile projects—Project Gemini (a rumored sequel or expansion to Outriders, reportedly under a publishing deal with Square Enix) and Project Bifrost (an internal initiative)—the studio has confirmed it will halt development on both titles.

CEO Sebastian Wojciechowski cited two key reasons for the cancellations:

1. Failure of a publisher to deliver a revised agreement for Project Gemini, including unclear commitments on future milestones.
2. Lack of communication and support from the publisher, which led to uncertainty and operational paralysis.
3. For Project Bifrost, internal financial analysis revealed that existing resources were insufficient to complete the project, even without external dependencies.

These developments have prompted a major restructuring, resulting in additional team reductions—adding to the 120 layoffs announced late last year. The studio emphasized that this decision was made with deep regret, and they expressed profound gratitude to departing team members for their dedication and innovation.

Key Context:

• Project Gemini: Confirmed to have involved Square Enix, though the publisher has not issued a public statement regarding the cancellation.
• Project Bifrost: An internal project, indicating People Can Fly had ambitions to explore new IP or technology independently, but could not sustain it financially.
• Ongoing Projects:
  • Project Echo (with Krafton, developer of Battlegrounds).
  • Project Delta (with Sony).
  • Gears of War: E-Day (with Microsoft).
• Latest Release: Bulletstorm VR—a critically praised VR reimagining of the cult-classic shooter, now available on Meta Quest and PSVR 2.

Industry Implications:

This latest round of cuts reflects broader challenges in the game development sector, including:

• Publisher instability and delayed or withdrawn funding.
• Rising development costs and pressure to deliver on ambitious, AAA-scale titles.
• Sustainability concerns for mid-tier studios relying on external partnerships.

Despite the turmoil, People Can Fly continues to maintain partnerships with major players in the industry and remains active in VR and next-gen console development. However, the repeated downsizing raises questions about long-term stability and whether the studio can regain momentum without significant external investment or a shift in development strategy.

As the industry navigates evolving market dynamics, the fate of studios like People Can Fly serves as a cautionary tale about the risks of overreliance on external publishing deals and underfunded internal innovation.

Looking Ahead: The studio’s ability to pivot—particularly through its ongoing work with Krafton, Sony, and Microsoft—will be crucial to its survival and future growth. Fans and industry watchers will be watching closely for any signs of a rebound in creative direction or fiscal recovery.