Neowiz advances Lies of P sequel into full development

Neowiz confirmed that the Lies of P sequel has moved into full-scale development. The publisher also shared updates on two new role-playing game projects in its latest earnings report.

Publisher Neowiz released its Q1 2026 earnings report on Tuesday. The document stated that the Lies of P sequel has reached the full-scale development phase after previously being limited to a vertical slice stage. This slice serves as a small playable section to demonstrate the game's overall direction and vision.

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Illustration of Nagoshi Studio employees in shock amid office closure due to funding cut, with Gang of Dragon game art and rainy Tokyo backdrop.
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NetEase halts funding for Toshihiro Nagoshi's Gang of Dragon, allows studio to continue independently

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NetEase has notified Nagoshi Studio it will stop funding from May 2026 for its debut game Gang of Dragon, after the studio requested an additional ¥7 billion ($44.4 million) to complete the project unveiled at The Game Awards 2025. The studio may continue independently if it secures alternative funding and negotiates to buy back IP rights.

Pocketpair has announced that its Palworld dating sim, originally revealed as an April Fools joke, is now in active development. Titled Palworld: More Than Just Pals, the game features a mix of cute interactions and darker elements in a time loop narrative. The confirmation came in a trailer released on official channels.

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Capcom has confirmed plans to announce additional unannounced games in the coming years, as stated in its FY 2025 Q3 earnings report. The company emphasized a focus on both new titles and sales of its catalog of older games. Upcoming releases include updates to Pragmata's launch date.

Developer Shift Up has indicated potential ports of its 2024 PlayStation 5 hit Stellar Blade to Xbox Series X/S and Nintendo Switch 2, possibly arriving later this year. The move aims to broaden the game's audience and build anticipation for its sequel. The studio confirmed these plans in its latest financial report.

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The developer behind Soulslike action-RPG Wuchang: Fallen Feathers has reportedly dissolved its core team following the departure of producer and director Xia Siyuan. Staff were asked to shift to outsourcing or support roles on other projects, but most declined. The game has received no updates since November 2025.

World of Neopia, the company behind Neopets, has ended its licensing agreement with Geekify Inc. effective immediately. The decision follows controversy over a tabletop RPG project that raised over $400,000 on Kickstarter but deviated from the brand's family-friendly image in its playtest materials.

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