In 2025, Eidos Montreal faces a turbulent period marked by a second wave of senior developer layoffs, compounding the studio's struggles after approximately 75 employees were dismissed in March. Owned by Embracer Group, the acclaimed developer behind Deus Ex: Human Revolution and Tomb Raider (2013) has canceled multiple in-house projects—including a dark fantasy ARPG, a sci-fi stealth game, and a modern point-and-click title—to focus solely on outsourced work for Microsoft. This pivot follows years of underperforming releases like Marvel's Avengers and Guardians of the Galaxy, despite critical acclaim for the latter, and raises existential questions about the studio's future under Embracer's ongoing corporate restructuring. With no original games released since its acquisition, Eidos Montreal's identity now hinges on supporting external franchises, leaving its creative legacy in jeopardy.

The Layoffs and Their Ripple Effects

Eidos Montreal's 2025 workforce reductions unfolded in two devastating phases:

  • March 2025: Around 75 developers were let go, largely due to Microsoft ending its contract for Fable support earlier in the year. This collaboration had involved 100 Eidos staffers.

  • Mid-2025: Senior developers departed in a second wave, signaling deeper instability. Public resumés from affected employees revealed three axed projects:

  • 🧙‍♂️ A dark fantasy action RPG

  • 🕵️‍♂️ A sci-fi stealth game (widely speculated to be a new Deus Ex installment)

  • 🖱️ A modern point-and-click adventure with turn-based combat

Mike Straw of Insider Gaming warns that further layoffs are expected once current outsourced projects conclude, intensifying morale and talent-retention challenges.

Canceled Projects: Lost Potential and Industry Impact

Resumés exposed ambitious titles that will never launch, with the sci-fi stealth game drawing particular attention. Bloomberg's Jason Schreier had reported a new Deus Ex in development since 2022, making its cancellation a blow to fans. What might these games have offered?

Project Type Likely Franchise Tie Why It Mattered
Sci-fi Stealth Deus Ex series Continuation of a cyberpunk legacy
Dark Fantasy ARPG Original IP New lore in a popular genre
Point-and-Click Combat Niche revival Modern twist on classic mechanics

eidos-montreal-s-2025-crisis-layoffs-canceled-projects-and-outsourcing-shifts-image-0

The canceled Deus Ex project would have built on moments like this iconic scene—now a fading memory.

Outsourcing Focus: From Creators to Contractors

Eidos Montreal's shift to support roles began in 2023, with teams assisting on:

  • Grounded 2 (with Obsidian Entertainment)

  • Fable (with Playground Games) until its contract termination

This transition, driven by Embracer's restructuring, reduces the studio to a satellite developer. eidos-montreal-s-2025-crisis-layoffs-canceled-projects-and-outsourcing-shifts-image-1

While contributing to titles like Grounded 2 offers stability, it sidelines Eidos' signature innovation.

Embracer Group's Restructuring: A Domino Effect

Since 2022, Embracer has executed mass layoffs, studio closures, and asset sales across its portfolio. Eidos Montreal, acquired during this upheaval, exemplifies the fallout:

  • Zero original releases post-acquisition

  • Sales shortfalls under Square Enix (e.g., Guardians of the Galaxy praised but underperformed commercially)

  • 💼 Corporate prioritization of low-risk outsourcing over IP development

Is Embracer's strategy sustainable, or does it risk eroding the very talent that built studios like Eidos?

People Also Ask

❓ Will Eidos Montreal develop its own games again?

Currently, no. The studio is fully committed to outsourced projects for Microsoft, with no announced in-house titles.

❓ How have fans reacted to the Deus Ex cancellation?

Community forums express widespread disappointment, citing the series' influence on immersive sims and cyberpunk narratives.

❓ What does Embracer's restructuring mean for other studios?

Similar fates loom for smaller Embracer-owned teams, as the conglomerate streamlines operations post-2022 expansion.

A Future on the Brink: Personal Outlook

Eidos Montreal stands at a crossroads: Will it become a permanent contractor, or can it reclaim its legacy? I foresee a grim trajectory—without intervention, the studio risks dissolution or merger. Yet, hope flickers if Embracer reinvests in original IP. After all, could a phoenix rise from the ashes of canceled dreams? Only time will tell if this once-pioneering developer can navigate its way back from the brink.