A new Deus Ex game has reportedly been in development for 2 years, but Embracer just canceled it amid more layoffs

Embracer Group has canceled an unannounced Deus Ex game after two years of development and laid off a number of employees at developer Eidos Montreal, reports Bloomberg.

Rumors of a Deus Ex revival from Eidos Montreal first surfaced in 2022 following the IP's sale to Embracer Group from Square Enix as part of a massive $300 million deal. In November, the project was said to be in "very early development," the timing of which lines up with the latest news that it's been canceled entirely.

Bloomberg reports that the doomed Deux Ex project was due to enter full production later in 2024, but has been scrapped by Embracer amid another round of layoffs "as part of an ongoing initiative to cut costs."

Even in the context of the video game industry's rapidly increasing volatility, Embracer's restructuring in the wake of its massive pandemic-era expansion is particularly brutal. The company announced its plan to reduce the total of its then-17,000-strong workforce in June of 2023, and it's followed through with cuts to Tomb Raider studio Crystal Dynamics following news that 900 employees had lost their jobs in an earlier round of layoffs.

In a statement, Eidos Montreal reveals that 97 employees have been laid off across development teams, administration, and support services. "The global economic context, the challenges of our industry, and the comprehensive restructuring announced by Embracer have finally affected our studio," reads the statement.

The developer has yet to acknowledge the reportedly canceled Deus Ex game, instead focusing on "the well-being of our team" and "the continuous commitment to creating games that players will be able to enjoy in the near future."

Looking ahead, here are all of the new games of 2024 to keep on your radar.