People Can Fly has cancelled co-op action RPG Project Dagger

People Can Fly has cancelled a co-op action RPG codenamed Project Dagger after several years of development.

As spotted by X user MauroNL, the Polish company informed investors this month that work on the game was discontinued on April 5

It said it had decided to cancel the project after a revaluation of the scope and commercial potential of the game.

The cancellation is expected to negatively impact People Can Fly’s standalone financial result for 2023 by $16.9 million and its consolidated financial result by $19.75 million.

The company behind Painkiller, Bulletstorm, Gears of War: Judgment and Outriders had been planning to self-publish Project Dagger after it was dropped by original publisher Take-Two Interactive in 2022.

According to People Can Fly’s website, the triple-A title was a “co-op action melee RPG”. Development was being led by its New York studio and at least 50 people were working on the game at one point.

The original IP was targeting a 2025-2026 release and was planned as the first entry in a new game franchise.

In January, People Can Fly reportedly laid off over 30 developers working on an unannounced Square Enix game.