German developer Fishlabs was in the process of developing a new Red Faction game, which was ultimately canceled by parent company Embracer.

According to a recent report by RockPaperShotgun, the studio behind Chorus had plans to revive the popular open-world franchise. This project was one of two being worked on by Fishlabs, with the first being an original sci-fi game that was axed months prior.

The development of the new Red Faction game was happening around the same time as Embracer shutting down series creator Volition last year. While this move was seen as controversial, Fishlabs reportedly had a genuine interest in the sci-fi setting of the game.

Employees from the canceled original game (dubbed 'Project Black') transitioned to work on Red Faction, which had the codename 'Project White' and was considered a 'side project' as the team was also tasked with pitching games based on Embracer's intellectual properties.

Despite aiming to create a 'safe sequel' in line with 2009's Red Faction: Guerrilla, the team also explored incorporating immersive simulation elements such as open-ended play styles. They even pitched the game to Embracer label Plaion through fake in-world trailers and cosplay.

Fishlabs' Red Faction project leads to studio shakeup

Reportedly, morale within 'Project White' was relatively high and Plaion was impressed with the pitches. However, a 50/50 internal vote resulted in the project being immediately canceled, leading to Fishlabs leadership being instructed to lay off 'almost everyone' not actively working on a project in development.

Over the following weekend, 50 Fishlabs employees were let go, with Embracer CEO Lars Wingefors attributing the decision to a lack of approval and funding.

RockPaperShotgun reports that Fishlabs is currently operating as a cross-development team to provide support to other studios. While Chorus, released in 2021, was said to be profitable for the studio, it did not meet Embracer's commercial expectations.

For more information on Fishlabs, Embracer's studio management approach, and the troubled development of 'Project Black,' you can read the full report here.

.