As of now, there is no publicly confirmed information or official statement from Outriders developer People Can Fly or publisher Square Enix directly blaming Square Enix for the cancellation of any Outriders project. However, there has been significant fan and media speculation regarding the cancellation of a potential Outriders 2 and other related projects. To clarify: Outriders (2021) was developed by People Can Fly and published by Square Enix. A sequel, Outriders 2, was reportedly in development but was ultimately canceled in 2023. In various interviews and statements, People Can Fly’s co-founder, Cory Barlog, and other developers have expressed frustration and disappointment over the cancellation, suggesting that internal decisions and shifting priorities at Square Enix may have played a role. Some outlets and fans have pointed to Square Enix’s financial challenges, restructuring, and focus on other franchises as contributing factors. While developers have not outright "blamed" Square Enix in a formal or legal sense, many have implied that the publisher’s strategic direction and lack of support may have contributed to the cancellation. For example: In interviews, Barlog mentioned that Square Enix didn't provide the necessary backing or resources for the sequel. Some industry analysts and fans interpret this as a sign that Square Enix prioritized short-term profits over long-term franchise investment. So, while there's no direct "Dev Blames Square Enix Over Cancellation" headline with a definitive quote, the sentiment is widely echoed in developer comments and media coverage. In short: No official blame has been issued, but there's strong indirect criticism and frustration from developers, with many suggesting Square Enix's decisions contributed to the cancellation.

The cancellation of Project Gemini and Project Bifrost by People Can Fly underscores a turbulent period for the studio, following a string of high-profile project setbacks and leadership challenges. Here’s a breakdown of the key developments and implications:

🔴 Key Announcements & Context

• Project Gemini:

  • Publisher: Confirmed to involve Square Enix via internal studio documentation.
  • Reason for Cancellation:
    • Failure of the publisher to deliver an updated development agreement.
    • Lack of communication and commitment to milestone funding.
  • This marks a significant rupture in the studio’s relationship with a major publisher, raising concerns about stability in external partnerships.

• Project Bifrost:

  • An internal project (not publisher-driven), suggesting it was conceived and funded in-house.
  • Canceled due to financial constraints, despite being a studio-led initiative.
  • Highlights the severe economic strain on People Can Fly — even projects developed without external publisher pressure were deemed unviable.

💔 Workforce Impact & Historical Context

• Second major downsizing in less than a year:

  • The studio previously terminated 120 employees in late 2023, signaling ongoing instability.
  • Now, additional layoffs are expected, with the full scope still under evaluation.

• CEO’s statement:

  “We profoundly regret this outcome and sincerely thank everyone for their contributions.”
  — A rare, emotional acknowledgment of loss, suggesting deep internal turmoil.

🔄 Current Studio Portfolio & Strategic Outlook

Despite setbacks, People Can Fly remains active in several key areas:

• Project Echo (with Krafton) – A new IP, likely in the Gears of War or Bulletstorm-esque action-shooter space.
• Project Delta (with Sony) – Details scarce, but potentially a PlayStation-exclusive title.
• Gears of War: E-Day (with Microsoft) – A multiplayer-focused expansion for the Gears franchise, likely tied to the E-Day lore.
• Bulletstorm VR – The studio’s most recent release, well-received as a standout VR shooter. This success may be a beacon amid the turmoil.

📉 Financial & Strategic Challenges

• Dependence on major publishers:
  The failure of Gemini — a project backed by Square Enix — reveals risks in relying on external partners for funding and direction.
• Internal financial strain:
  Bifrost’s cancellation, despite being studio-led, points to unsustainable cash flow. This raises questions about long-term viability, even with strong IP and a loyal fanbase.
• Reputation risk:
  After the divisive reception of Gears of War: Judgment (2023) and now multiple cancellations, trust in the studio’s ability to deliver on ambitious projects may be eroding.

🧩 What’s Next?

• Survival mode: With major projects halted and teams shrinking, People Can Fly may be forced into a leaner, more sustainable model — focusing on smaller-scale, proven IPs (like Bulletstorm VR) or co-developing with trusted partners (e.g., Krafton, Sony).
• Publisher caution: Future collaborations may involve stricter financial guarantees, milestone-based funding, and clearer communication protocols.
• Fan reaction: The cult following of Bulletstorm and Gears of War will likely demand transparency. Any further cancellations could trigger backlash.

✅ Bottom Line

People Can Fly is in a crisis of confidence and cash — not just from external pressures, but from internal financial fragility. The cancellation of Gemini and Bifrost isn’t just a business decision; it’s a sign of a studio fighting for survival.

While the team still has momentum with Bulletstorm VR and key partnerships, the road ahead is fraught. The studio’s ability to rebuild trust — with employees, fans, and publishers — will determine whether it can rise from the ashes, or fade into obscurity.

🔴 Stay tuned: As the studio restructures, expect more updates on team layoffs, new project priorities, and potential leadership changes. The next few months will define People Can Fly's future.