The world of video game development is a complex ecosystem, often characterized by both ambitious projects and abrupt closures. This week, two separate reports paint a vivid picture of this duality: one detailing a potential spin-off game from the acclaimed *Cyberpunk 2077* universe, and another announcing the liquidation of a French game studio. These developments underscore the high stakes and unpredictable nature of creating interactive entertainment, where even successful franchises can see projects stall, and smaller studios face existential threats.
First, to the intriguing news from Night City: it's been reported that CD Projekt Red, the Polish studio behind *Cyberpunk 2077*, was collaborating with WayForward, known for its *Shantae* series and various licensed titles, on a smaller *Cyberpunk 2077* game. This project, codenamed 'Gemini,' was apparently a 2.5D beat-em-up inspired by the popular Netflix anime *Cyberpunk: Edgerunners*. Details emerged from a former WayForward employee's portfolio, suggesting research and development was underway from 2025 into this year, with plans for 'rollback-safe architecture' and 'online transport integration,' strongly implying online multiplayer capabilities.
WayForward has a strong track record with licensed games and brawlers, having developed titles like *River City Girls*. The reported project aligns with their expertise, aiming to translate the visual style and action of *Edgerunners* into a side-scrolling format. While *Cyberpunk 2077* continues to perform well for CD Projekt Red, which is also working on a full sequel, a spin-off could have served as a way to keep fans engaged between major releases. However, the status of Project Gemini is currently unclear, with one report suggesting development on an unannounced Unreal Engine 5 title at WayForward, possibly this one, was halted in September 2025.
On the other side of the industry spectrum, French developer Midgar Studio is facing liquidation. The studio, known for *Edge of Eternity*, is owned by Nacon, a larger French publisher and developer. Nacon itself filed for insolvency earlier this year, a move that has now directly impacted its subsidiaries. This situation highlights the precarious position of smaller studios, even those under the umbrella of larger entities. Economic pressures, market shifts, or the financial woes of a parent company can quickly lead to a studio's demise, regardless of its creative output or past successes.
The juxtaposition of these two stories is telling. On one hand, we see the potential for a new game building on the success of a major franchise and a popular anime, leveraging an established developer's genre expertise. This represents the aspirational side of game development, where creative partnerships aim to expand beloved universes. On the other, Midgar Studio's liquidation serves as a stark reminder of the industry's volatility. Even with a successful game like *Edge of Eternity* under its belt, the studio could not withstand the financial instability of its owner, Nacon.
For Project Ares readers, this illustrates the fundamental economic forces at play. The reported *Cyberpunk* spin-off, if it comes to fruition, could be a win for players seeking new experiences in that world, and a strategic move for CD Projekt Red to diversify its offerings. For WayForward, it would be another high-profile licensed project. Conversely, Midgar Studio's closure means job losses for its employees and the loss of a creative entity, impacting the diversity of games produced. It also signals potential ripple effects for Nacon, as its financial troubles continue to unfold, possibly affecting other studios it owns or projects it publishes.
These events underscore the constant churn in the video game sector. While blockbuster successes like *Cyberpunk 2077* can generate massive revenue and spawn new projects, the industry remains highly competitive and capital-intensive. Smaller studios often operate on thinner margins, making them more vulnerable to economic downturns or the financial health of their parent companies. The path from concept to finished game is fraught with challenges, and even projects with strong foundations can be delayed, altered, or canceled.
What to watch next: Keep an eye out for any official announcements from CD Projekt Red or WayForward regarding Project Gemini, or clarification on its rumored cancellation. The fate of any intellectual property and talent from Midgar Studio will also be a key indicator of Nacon's restructuring efforts. More broadly, the industry will continue to monitor the financial health of medium-sized publishers like Nacon, as their struggles can have significant consequences for the smaller studios they support and the broader gaming landscape.