Embracer-owned developer Fishlabs was working on a new Red Faction sequel before layoffs hit the studio. A sci-fi Metroidvania game and a visual prototype for the Red Faction project were in the works at Fishlabs, which had been acquired by Embracer in 2018. Despite pitching the project to Embracer-owned publisher Plaion, the Red Faction sequel was ultimately canceled in November last year, leading to 50 job losses. This cancellation occurred during a period of restructuring at Embracer Group, which saw over a thousand staff laid off, games canceled, and studios shut down. Embracer's financial struggles, including the collapse of a major deal with Savvy Games Group, have led to criticism and further cancellations, such as a new Deus Ex game and the shutdown of Pieces Interactive.