Reflector Entertainment has announced the cancellation of an in-development project and another round of layoffs following the underwhelming performance of its debut game, Unknown 9: Awakening. The game, featuring The Witcher star Anya Chalotra, failed to meet Reflector CEO Herve Hoerdt's expectations, leading to a series of unfortunate events.

Hoerdt explained in a LinkedIn post that the decision to cancel the project was directly correlated with the failure of Unknown 9: Awakening. Despite numerous timeline adjustments and investments, the game didn't perform as expected, making it unsustainable for the studio's future.

"This failure has far-reaching consequences," Hoerdt wrote. "Unfortunately, this also affects back-office staff, bringing the support teams in line with the single project approach the studio will adopt for the imminent future."

Reflector previously announced layoffs in November 2024, citing a lack of sufficient work rather than commercial success or external pressures. However, it seems that Unknown 9: Awakening's poor performance has had a direct impact on the studio's decision-making process.

The cancellation of the project and subsequent layoffs are likely to have significant implications for the gaming industry, particularly in terms of AI-powered game development. The use of artificial intelligence in mobile apps is becoming increasingly important as developers look to create more immersive experiences for players. However, it seems that Reflector Entertainment has been unable to capitalize on this trend with its latest project.

Despite the challenges faced by Reflector Entertainment, Bandai Namco, which acquired the studio in 2020, remains committed to creating Western content for global audiences. This commitment suggests that there may still be opportunities for AI-powered game development within the studio's future projects.

As the gaming industry continues to evolve, it will be interesting to see how Reflector Entertainment adapts to its current challenges and whether it can successfully integrate AI technology into its future projects.