People Can Fly has canceled two in-development projects—the Square Enix-published Project Gemini and the self-published virtual reality game Project Bifrost—and will lay off staff as a result, studio CEO Sebastian Wojciechowski said in a message.
The developer is also working on Gears of War: E-Day in cooperation with The Coalition, and Project Delta in cooperation with Sony Interactive Entertainment.
Here is the full message from Wojciechowski:
Today we made a very difficult decision to suspend the development of Project Gemini and Project Bifrost—the relevant current reports have been released to the market.
The suspension of the Gemini project is a consequence of the fact that the Publisher has not presented us with a draft of the subsequent content rider to the Publishing Agreement covering the terms and conditions of further milestones on project Gemini and the lack of communication from the Publisher as to its willingness to continue or terminate the Gemini project.
Project Bifrost was suspended due to the above and the analysis of the Group’s cash flow, which showed a lack of prospects for securing organizational resources and funds necessary to continue the production and release of this project.
As a result, we have to significantly regroup as a studio and scale down our teams, which hurts the most.
We wish to express our deepest regret and sadness over how these events have unfolded and our sincere gratitude for everyone’s contribution up to this point.
—Sebastian Wojciechowski, CEO