Eidos-Montréal
Montreal studio behind Deus Ex, now doing co-dev work for other publishers' games.
On the record
Checkpoint: Embracer Group's targeted three-way split and new GM Patrice Baig's first strategic decisions
The call
A studio with real IP history now surviving on other companies' co-dev work while its own parent breaks apart around it.
Eidos-Montréal makes video games and helps other studios finish their projects, but it has lost about 300 workers in two years and canceled its own big game (Deus Ex) last year. It is easy to replace because it mostly does testing, translation, and background artwork, jobs that AI tools are already starting to do better and cheaper, and its owner Embracer Group has shown it will cut studios whenever costs get tight. The only thing that could save it is if the parent company's planned breakup in 2026 leaves Eidos in a stronger spot with new leadership and money to make its own game again, or if the old Deus Ex or Thief games come back as paying projects.
Why
01
AI pressure: AI tools for QA, localization, and background art generation. The functions AI automates first, QA, localization, asset work, are exactly what recent layoffs already cut. Could AI do the core job? Yes, likely.
02
Bigger players: Embracer Group. Parent cancelled the studio's Deus Ex project in Jan 2024 and cut roughly 300 roles since, with a three-way split still pending in 2026. Could a giant copy it? Yes, easily.
03
What protects it. Decades of Deus Ex and Tomb Raider-adjacent talent and brand recognition, but no funded project currently uses it.
What would change this call
Outcome of Embracer's three-way split (2026) and which entity Eidos-Montréal lands in. Shows whether the studio gets stable capital or faces further breakup risk.
Any greenlit, funded self-led AAA project announcement (Deus Ex or new IP). Would show the studio regaining creative control rather than remaining pure co-dev labor.
Additional layoff rounds after Fable/Grounded 2 milestones ship. Would confirm the pattern of cuts tied to completed co-dev work continues.
Any greenlit, funded self-led AAA project announcement (Deus Ex or new IP). Would show the studio regaining creative control rather than remaining pure co-dev labor.
Additional layoff rounds after Fable/Grounded 2 milestones ship. Would confirm the pattern of cuts tied to completed co-dev work continues.
Key numbers
- ~300 roles cut since 2024
- 124 laid off incl. studio head, Mar 2026
- Bought for $300M with Crystal Dynamics
Named risks
- Embracer Group's three-way split (targeted 2026) could change ownership or reporting structure.
- AI automation of QA, localization, and background art, the exact functions cut in recent layoffs.
- No funded self-led AAA title since Deus Ex cancellation in January 2024.
- Fourth layoff round in two years with unclear remaining headcount as of March 2026.
- Dependence on work-for-hire contracts from Microsoft-owned studios for current output.
Rivals, as read in July 2026
| Rival | Direction | Evidence |
|---|---|---|
| Crystal Dynamics | contesting | Sibling Embracer studio saw four layoff rounds in 12 months as of Mar 19, 2026, similar distress |
| Microsoft/Xbox Game Studios (Playground Games, Obsidian) | losing to | Eidos-Montréal now works as co-dev vendor on Xbox's Fable and Grounded 2 rather than shipping own IP, 2024-2025 |
| IO Interactive | gaining on | Former Eidos-lineage studio now independent while Eidos-Montréal remains dependent subsidiary, as of 2026 |
| Square Enix | losing to | Former parent retains legacy IP publishing ties after selling studio for $300M in 2022 |
| Ubisoft | contesting | Both studios hit by layoffs in the same March 2026 industry wave |
Questions people ask
- Is Eidos-Montréal shutting down or shrinking?
- Eidos-Montréal has cut roughly 300 roles since 2024 across four layoff rounds, the latest on March 31, 2026 when 124 staff and 19-year studio head David Anfossi departed. It has not shut down but is a materially smaller studio than its 2022 headcount of 481.
- Who owns Eidos-Montréal?
- Embracer Group has owned Eidos-Montréal since a deal closed August 26, 2022, when Square Enix sold Eidos-Montréal, Crystal Dynamics, and Square Enix Montréal for $300 million. Embracer is now mid-way through splitting into three standalone companies as of 2026.
- Is the new Deus Ex game still happening at Eidos-Montréal?
- No. A new Deus Ex title in development since 2022 was cancelled by parent Embracer Group in January 2024 after roughly two years of work, and no replacement self-led flagship project has been announced as of mid-2026.
- Is it safe to take a job at Eidos-Montréal right now?
- Risk is elevated: the studio has had four layoff rounds in about two years (97 in early 2024, 75 in Mar/Apr 2025, and 124 plus the studio head in March 2026), and IGN reported after the March 2026 cuts that remaining staff numbers were unclear.
- What is Eidos-Montréal actually working on now?
- As of 2026 its active work is mostly co-development for other studios: support on Playground Games' Fable reboot (revealed June 2024), co-dev on Obsidian's Grounded 2 (announced June 2025), and its own Thief VR: Legacy of Shadow, patched through January 2026, rather than a self-led flagship AAA title.
- Could AI replace jobs at Eidos-Montréal?
- The studio's recent layoffs have concentrated in QA, localization, and support/production, the same functions industry researchers (Wharton GAIL, April 2026) say AI is compressing from months to weeks, making these roles among the most exposed to further automation-driven cuts.
Timeline
- 2026-04-02CFO Patrice Baig appointed General Manager, replacing David Anfossi
- 2026-03-31124 employees laid off; studio head David Anfossi departs after 19 years
- 2025-06Co-development on Obsidian's Grounded 2 announced
- 2025-0375 employees laid off
- 2024-06Support role on Playground Games' Fable reboot revealed
- 2024-01New Deus Ex title cancelled by Embracer after ~2 years of development
- 202497 employees laid off following Deus Ex cancellation
- 2022-08-26Embracer acquisition of Eidos-Montréal, Crystal Dynamics, Square Enix Montréal closes
- 2022-05-02Square Enix agrees to sell Eidos-Montréal and sibling studios to Embracer for $300 million
Revision history
23 July 2026
First assessed. Little protection left. The text above is fixed as of this date and is not edited afterwards.
In the same band
Sources
- Eidos-Montréal
- Square Enix sells off Tomb Raider, Deus Ex, Crystal Dynamics, and Eidos (May 2, 2022)
- Embracer Group press release (Nov. 29, 2022)
- Eidos-Montréal (Jul. 8, 2026)
- RPS (Mar. 31, 2026)
- Eidos-Montréal, Overview (Jul. 6, 2026)
- Square Enix Sells Crystal Dynamics, Eidos-Montréal... (May 2, 2022)
- Patch 2.0, Eidos-Montréal Support (Jan. 9, 2026)
- Eidos-Montréal announces 124 job cuts (Mar. 31, 2026)
- Appointment of Patrice Baig as General Manager (Apr. 2, 2026)
- AI In Gaming Industry Statistics (Feb. 12, 2026)
- Kotaku (Mar. 19, 2026)