Embracer Group, the parent company of Fishlabs, reportedly halted the development of a sequel to Red Faction: Guerrilla amid significant internal restructuring. According to Rock Paper Shotgun, the decision to cancel the sequel came amidst Embracer’s broader strategy following the collapse of an investment deal, which led to the closure of multiple studios and projects.
The sequel was described as a “safe sequel” by former Fishlabs developers, aiming to build upon the foundation laid by original creator Volition. It promised a familiar emphasis on destructible environments, coupled with an open-ended gameplay experience reminiscent of immersive sims like Dishonored.
Set a century after the events of its predecessor, the game would have featured a female protagonist leading an underground revolution, navigating alliances and factions in new and reimagined locations.
Fishlabs had reportedly pitched the Red Faction sequel several times to Embracer, with a particularly elaborate presentation in mid-November 2023 that included a “fake trailer” and cosplay elements.
Initial feedback from Embracer was positive, leading to optimism about the project’s approval. However, when the decision ultimately came to a vote in November, the project was unexpectedly cancelled, leaving staff devastated.
The cancellation resulted in significant layoffs across various departments at Fishlabs, affecting approximately 50 employees involved in level design, narrative, game design, programming, audio, art, and animation. Many of these former developers now collaborate across different Embracer projects as a cross-functional team.
Embracer Group, amidst its restructuring efforts, has also emphasized its strategic focus on integrating AI into game development processes. According to their annual report, Embracer sees AI as essential for enhancing resource efficiency and maintaining competitiveness within the industry.
They aim to leverage AI not to replace human input but to empower their teams, highlighting a human-centric approach to technological integration.
The cancellation of the Red Faction sequel underscores broader challenges within Embracer Group as it navigates corporate restructuring and strategic realignment amidst industry pressures and competitive dynamics.
