Another game development studio is switching to a cost-cutting mode. People Can Fly has decided to reduce its self-publishing strategy and restructure its operations.
Outriders
On December 10, People Can Fly announced that it had failed to secure PLN 350 million ($86.2 million) in funding needed to support its self-publishing activities. This affected at least two games in development that were funded by the studio:
- Project Bifrost — the team size will be reduced, which will involve temporary layoffs and job cuts;
- Project Victoria — the game has been suspended, with part of the team facing temporary layoffs and the rest being subject to a redundancy.
Both projects were funded by People Can Fly and were expected to be self-published in 2026 under the Early Access model. The development of Bifrost will continue by a reduced team, and the fate of Victoria will depend on whether the company manages to secure additional financing.
In total, People Can Fly will part ways with more than 120 employees as part of this strategic review.
“This action became necessary as external market pressures persisted beyond our forecasts,” People Can Fly CEO Sebastian Wojciechowski said in a statement. “The video game market is still evolving, and we have to adjust with where things are today.”
Important update from Sebastian Wojciechowski, CEO. pic.twitter.com/UeDV97zEoB
— People Can Fly (@PCFPeopleCanFly) December 10, 2024
The studio will focus on the development of a single independent game instead of trying to produce and self-publish multiple projects. It will also continue to work under the work-for-hire model on titles such as Project Gemini (in partnership with Square Enix), Project Maverick (Microsoft), and Project Echo (Krafton).
“We believe in our teams, games and their potential, and we remain extremely committed to continuing that journey, but we need to tailor our plans to our financial capacity.” Wojciechowski noted.
It is worth noting that Krafton, which acquired a 10% stake in People Can Fly last year, has first rights to negotiate a potential publishing agreement for the Bifrost and Victoria projects if the studio decides not to self-publish them.