Outriders developer People Can Fly has announced that Take-Two has terminated the “development and publishing agreement,” of the studio’s in-development Project Dagger.

People Can Fly announced earlier today (September 27) that it received a letter from Take-Two Interactive informing the developer of the termination of the agreement, which pertained to the development of Project Dagger, a new action-adventure IP that has been in development for two years.

Now Playing: Outriders Worldslayer Trailer | Summer Game Fest 2022

As noted in the press release, People Can Fly has retained the intellectual property rights to Project Dagger, as Take-Two apparently decided not to buy them out. People Can Fly notes that it is “determined to grow the project out on its own.”

People Can Fly’s CEO Sebastian Wojciechowski also provided a statement for the announcement, saying “I assume we will part on good terms, and I don’t see reasons why we couldn’t work with Take-Two on some other project in the future. We strongly believe in the Project Dagger’s potential and are now committed to continue its development within our self-publishing pipeline.”

Wojciechowski went on to say that the game is still in pre-production, with the team focusing on closing combat and game loops, as well as moving from Unreal Engine 4 to UE5. The CEO also did not rule out working with another publisher “if this creates a compelling business opportunity.”

The press release also notes that Project Dagger is “one of seven projects” in the works at People Can Fly. One is in the works at Square Enix, two are planned for self-publishing, another is in the concept phase, and two others are VR projects.

People Can Fly’s most recent title, Outriders, generally received average to good reviews, with GameSpot’s Outriders review giving the game an 8/10.

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