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A Red Faction: Guerrilla was under development at Fishlabs, which was reportedly cancelled during the month-long Embracer Group layoffs. The game was initially pitched by the original Red Faction studio, Volition, whose shutdown led to the game being handed over to Fishlabs.
Fishlabs was acquired by Embracer during their decade-long period of mergers and acquisitions with other gaming studios, such as Eidos Montreal, THQ Nordic and Dark Horse Media. After the acquisition period, Embracer has made internal changes to most studios, including Fishlabs.
During their month-long layoff, two Fishlabs-led projects were reportedly shut down following mass layoffs, which included the visual prototype for the new Red Faction: Guerilla Sequel.
Embracer Group shuts down Fishlabs-led Red Faction sequel
After the closure of Red Faction: Guerrilla and Saints Row studio Voilition, Fishlabs was reportedly creating a prototype for the new Red Faction sequel.
According to Rock, Paper, Shotgun's latest conversation with an ex-Fishlabs employee, Fishlabs had geared up with an Unreal Engine 5 teaser for the Red Faction sequel and pitched it to Embracer-owned publisher Plaion.
While Red Faction: Guerrilla was a beloved game for third-person shooter enthusiasts, it seemed like Plaion was not impressed. The Red Faction sequel was not cleared for production, which led to its complete shutdown last November.
Following the decision to not go forward with the two active projects, Fishlabs was instructed to lay off all inactive developers. Unfortunately, Fishlabs had to layoff around 50 of their talented developers.
Aside from the Red Faction sequel, Fishlabs was also working on a game titled Project Black, which was a sci-fi metroidvania with open-world aspects. The game was also cancelled after a two-year development period.
After their massive fallout with Savvy Games Group, Embracer Group resorted to making cost cuts, which led to their mass layoffs. They had also reportedly cancelled a new Dues Ex game following layoffs at Eidos Montreal and shut down Alone in the Dark, Pieces Interactive.
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