Game publisher Embracer Group AB has decided to close its Onoma studio located in Montreal, Canada. This decision looks very strange, since the studio was bought just a few months ago , and in early October it was rebranded.

Recall that in May of this year, Embracer Group AB bought Crystal Dynamics, Eidos-Montreal and Square Enix Montreal studios from Square Enix, as well as a number of IPs, including Tomb Raider and Deus Ex. On October 10, the company renamed Square Enix Montreal to Onoma. The studio is known as the developer of mobile games in the Go series, such as Hitman Go.

A spokesman for Embracer Group AB confirmed on Tuesday that the company is closing Onoma and said the move would affect about 200 employees. On the same day, the company informed employees that some of them would be transferred to sister studio Eidos Montreal. The closure of Onoma is likely part of a larger cost-cutting initiative.

For Eidos Montreal, the situation clearly looks better, although it is also far from ideal. According to people familiar with the matter, the studio is in the “very, very early” phase of developing a new game in the Deus Ex series. Previous rumors have claimed that Eidos Montreal wants to “do what Cyberpunk 2077 can’t”. However, the studio has downsized one unannounced project and canceled another. According to rumors, the company was working on a Stranger-Things-style project, but then it was canceled, and the team refocused on something else. This new project is said to have been “overhauled” to lower his ambition somewhat.

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In addition, Eidos Montreal is also rumored to be involved in the revival of the Fable series. The company allegedly plans to partner with Microsoft to help develop several games, including one under the Fable franchise led by UK-based Playground Games.

Source: bloomberg , wccftech