Piranha Bytes Isn’t Dead Yet – Studio Is Trying to Find a Partner for Its New Game (Likely Elex 3)

German developer Piranha Bytes might be the latest studio to end up on Embracer Group's chopping block, although it's not over yet.

Last week, several German journalistic sources shared the news that the studio would likely be closed. Lead game designer Björn Pankratz left the studio in November, and the rest of the studio also got the notice last month. However, they were seemingly able to convince Embracer Group executives to try and shop their next project around other companies. This project should be Elex 3, which had also received around €3 million in funding from the German government, with a slated release window of 2026.

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Today, Piranha Bytes largely confirmed all that information with the following message shared on Twitter:

Dear fans,
Yes, it's true. We, Piranha Bytes, are in a difficult situation. There are a lot of news about us circulating right now and this is our answer: Don't write us off yet!
We do everything to continue creating worlds in which you can lose yourself. This is what our hearts have always beaten for.
We are convinced that we will succeed. We are creative minds and there's no lack of ideas! We stick together, no matter what.
Now, we are focussing on this goal with all our strength and do whatever it takes to find a partner for this project. As soon as there are any news, we will share them with you. Thank you very much for your continuous support!

Piranha Bytes originally created the Gothic IP. However, it sounds like that franchise would remain with the Embracer Group, which is currently preparing a remake of the first installment with newly established Spanish studio Alkimia Interactive. Piranha Bytes would then continue with the Elex sci-fantasy IP. While the first game seemed like a decent foundation, the sequel launched in early 2022 didn't really improve much on it and fell short of sales estimates.