Eidos Montreal Cancels Ambitious Open-World Game, Lays Off 124 Employees
In a significant blow to the gaming industry, Eidos Montreal has officially canceled Project P11, an ambitious open-world game that had been in development since early 2019. This cancellation has directly resulted in the layoff of 124 employees, as announced earlier this week. The studio's long-time head, David Anfossi, is also stepping down after 13 years at the helm, marking a major leadership change.
Details of the Canceled Project P11
Project P11, internally named as the 11th project in development at the studio, was a third-person action-adventure title set in an open-world environment. Players would have controlled River, a teenager belonging to a group known as the Spiritbounds. The gameplay involved fighting evil spirits using magical staffs and riding mythical creatures for traversal. River's primary companion was Redheart, a giant moose-like beast designed to help navigate the expansive game map.
According to reports from Insider Gaming, which first broke the story, the game was surprisingly close to completion. Footage indicated that Project P11 had passed key development milestones and was deep in the debugging phase. A release window had been tentatively scheduled for later this year, making the cancellation particularly unexpected given its advanced state.
Troubled Development and Massive Budget Overruns
Despite nearing completion, Project P11 faced numerous challenges throughout its development cycle. Sources revealed to Insider Gaming that the game cycled through four different game engines, leading to technical inconsistencies and delays. Additionally, the project was plagued by ongoing narrative conflicts that hindered creative direction.
The financial impact was staggering, with the budget reportedly spiraling into the hundreds of millions of dollars. This runaway spending had already claimed another victim earlier this year: a new Deus Ex game was quietly canceled in January 2024 as a direct result of the financial strain caused by Project P11's excessive costs.
Impact of Embracer Group's Financial Struggles
Eidos Montreal's parent company, Embracer Group, has been experiencing severe financial difficulties since a major restructuring in 2023–2024. This cancellation fits into an uncomfortable pattern of cost-cutting measures within the conglomerate. Journalist Jason Schreier confirmed on Reddit that the layoffs and game cancellation occurred simultaneously on March 30, though Eidos Montreal's official statement did not mention any specific project.
The studio now appears to be shifting its focus away from developing original titles entirely. Instead, Eidos Montreal is pivoting toward a co-development role on external projects, such as Obsidian's Grounded 2 and Playground Games' Fable reboot. This represents a significant step down for a studio once renowned for creating iconic franchises like Deus Ex and Marvel's Guardians of the Galaxy.
The cancellation of Project P11 highlights the ongoing challenges in the gaming industry, particularly for studios under financial pressure from parent companies. With 124 employees losing their jobs and a major project scrapped, Eidos Montreal's future direction remains uncertain as it adapts to a new, more constrained role within the Embracer Group ecosystem.
