Gears of War: E-Day Sequel News—Guide on Xbox Release

Microsoft is looking to spark renewed attention in Gears of War with Gears of War: E-Day, a prequel that’s being developed with help from The Coalition and People Can Fly. Both teams have already touched various parts of the Gears story over the years—The Coalition through later series leadership and support, and People Can Fly through earlier contributions and ports. With that long overlap of experience, Gears of War: E-Day could serve as a kind of final “coming together” moment for what both studios have learned.

In the early stretch of Gears of War, both The Coalition and People Can Fly played more of a support role while Epic Games handled the heavy lifting behind the original trilogy and Gears of War: Judgment. Things shifted with Gears 4, when The Coalition effectively became the main driver for the franchise, collaborating with other support partners such as Sumo Digital and Splash Damage on Gears of War Reloaded and Gears Tactics. Even so, People Can Fly arguably stands out as the stronger creative force overall.

That reputation isn’t just talk. People Can Fly has a track record of building cult favorites, including the 2004 shooter Painkiller and the 2011 release Bulletstorm, often described as underrated despite widespread recognition of its style. Another major milestone came in 2021 with the looter-shooter Outriders, which many players consider the studio’s best work so far—though it’s also wrapped in the kind of bittersweet history that makes gamers wince.

A fresh report claims to outline how much funding The Coalition received to help build Gears of War: E-Day, the franchise’s newest entry.

Outriders 2 Was Supposed to Happen, But It Never Did

The First Outriders Is an Admirable Game That Never Got Its Due

When Outriders first arrived in 2021, looter-shooter fans treated it like a project with real potential. Its science-fantasy hook, responsive weapon feel, and loot loop that actually rewards you made it easy to recommend purely on gameplay. If you judge it on moment-to-moment action alone, Outriders still holds up better than anything People Can Fly had released previously, even putting it in the same conversation as established looter shooters like The Division 2.

Part of what made Outriders click is that it followed genre expectations in some ways—like inventory and UI that draw inspiration from Destiny—while still avoiding the most invasive modern monetization patterns. The game notably didn’t include battle passes or microtransactions, and the studio was direct about it not being a “live service” title in the traditional sense.

Players who enjoy the combat rhythm of games such as Destiny 2 often run into a different problem: the sprawling web of DLC and the weaponized sense of missing out that can come with the live-service model. Outriders offered the strengths without the baggage, which should have translated into massive success. Instead, it didn’t—so much so that the franchise’s sequel may have suffered as a result.

Quick facts

Outriders launched in 2021 and was praised for its premise, gunplay, abilities, and rewarding loot.
The game did not include battle passes or microtransactions.
People Can Fly said Outriders is not a traditional “live service” title.
Square Enix reportedly moved away from a sequel after the first game’s performance.
Outriders 2 was reportedly close to completion before being canceled in June 2025.
The cancellation reportedly coincided with layoffs at People Can Fly.

Why Outriders 2 Never Reached the Finish Line

Square Enix, the publisher for Outriders, was quick to praise the game’s launch. In a 2021 statement, it celebrated the early results, highlighting the scale of the player base and co-op engagement.

“With over 3.5 million unique players, average play times of over 30 hours and extremely high engagement for co-operative play, we and the amazing team at People Can Fly are so excited with this initial success.”

3.5 million unique players is still a strong figure, but the momentum apparently faded quickly. One major issue was that Outriders launched with serious technical problems. Even after fixes started rolling in, a portion of the community wasn’t willing to stick around long enough for recovery, effectively moving on before the most harmful issues were fully addressed.

On top of that, Outriders reportedly failed to earn a profit. The reasons cited include the technical troubles mentioned earlier and the game’s arrival on Game Pass, but another key factor was the absence of microtransactions. In practice, the live-service economy that powers games like Fortnite and Destiny 2 can generate huge revenue through premium cosmetics and battle passes—despite the fact that many players are outspokenly against those systems.

For better or worse, live-service structures can offer publishers a seemingly endless stream of spending opportunities. That kind of “always-on” profit potential is often the thing AAA leadership prioritizes most. In that sense, Outriders may have been consumer-friendly in exactly the way that hurt it financially.

When Outriders first launched in 2021, it was still seen by many looter-shooter players as a promising release. However, regardless of the specific mix of reasons behind the lack of earnings, Square Enix chose not to push forward with a sequel.

That decision is unfortunate on its own. It becomes more difficult to swallow once you consider that People Can Fly was reportedly already far along on Outriders 2, working through the project until its abrupt cancellation in June 2025. The cancellation reportedly overlapped with large-scale layoffs at People Can Fly as well, which only adds to how rough the story feels for the team and its supporters.

Forget the Old Timeline—Outriders 2 Could Have Flown With Another Chance

It’s impossible to say exactly what would have made Outriders 2 outperform its predecessor on the financial side. What is clear is that the looter-shooter landscape changed a lot between 2021 and today. At launch, Outriders competed against several already-established names in the genre, especially Destiny 2.

Now the situation looks different. Destiny 2 is ending support, and there doesn’t appear to be a directly comparable new release ready to take its place. That gap could create room for Outriders to return in a “phoenix” fashion—coming back after being doubted.

It would be no surprise if the next few years bring a wave of shooters marketed as “Destiny 2 replacements.” Still, Outriders 2 would have had a notable head start. If the development reports are accurate, the sequel was already “almost done,” waiting for a push to the finish line. With years of work already invested, People Can Fly could realistically ship it faster than starting over from scratch.

Of course, it isn’t that simple. The latest information suggests Square Enix still owns the rights to the Outriders brand, meaning it has control over what happens next. Put plainly, the sequel’s fate depends more on corporate decisions than on creative momentum.

Even so, there’s still a possible angle for hope. Square Enix hasn’t appeared locked into keeping every property it owns, selling off multiple IP rights in recent years, including Tomb Raider, Deus Ex, and Legacy of Kain. If Outriders became available at the right price, there’s at least a chance it could be freed up for a new attempt.

If things go well for Gears of War: E-Day, Microsoft could potentially be in a position to provide the necessary funding and push Outriders 2 across the line—turning a canceled project into a finished one. It’s speculative, but it’s the kind of scenario players can’t help hoping for.

Gears of War: E-Day

WHERE TO PLAY

Step into the horror and brutality of Emergence Day. Fourteen years before the original Gears of War, you’ll follow Marcus Fenix and Dominic Santiago through an origin-story campaign as the Locust Horde first erupts from below, forcing a desperate scramble for survival. From there, rally your squad for multiplayer featuring a reimagined take on Gears’ classic PvE mode, Horde Siege, or jump into a refined Versus PvP.

Built from the ground up in Unreal Engine 5, Gears of War: E-Day is designed to deliver the most immersive version of the series yet.

The Story of E-Day – Fight through the chaos of Emergence Day in a focused origin-story campaign. Take on the danger alone or group up with up to four players online across Campaign, Horde Siege, and Versus.

Horde Siege PvE – Back and Bigger Than Ever – Survive a city under siege in an expanded version of Gears’ signature co-op wave survival mode. Expect larger maps, more players, and bigger battles. Pick a class—Assault, Marksman, Medic, or Breacher—then deploy as a 4-player squad to push back the Locust.

Team up with multiple squads to tackle shared objectives and bring down world bosses. Keep surviving to earn rewards, unlock customization, and upgrade your loadout for the next match.

Versus Returns – Refined and Focused PvP – Face off on brand-new battlegrounds plus updated 4v4 modes designed for both quick action and serious competition. Choose your preferred level of challenge: grind in Ranked or drop into Social playlists for a more relaxed experience.

Modernized controls and movement aim to make combat feel smoother while keeping Gears’ cover-based identity intact. Jump, vault, slide, and flank with intent.

A Terrifying Threat from Below – Expect a darker, grittier tone along with reimagined enemies that bring back a sense of dread. The game’s atmosphere and level of detail are pushed further than before, making the world feel more grounded, believable, and dangerous.

Familiar foes return with added menace, alongside new creatures and villains designed to reintroduce genuine horror.

Feels Like Gears. Plays Like New – Cover-based combat comes back as a staple, now enhanced with updated movement and traversal that add more freedom and verticality. Fan-favorite weapons return with fresh reworks, alongside entirely new gear built for brutal close-quarters fights.

Rebuilt in Unreal Engine 5 – A new technical foundation for Gears. Built to support modern performance goals, including 4K resolution and up to 60 frames per second across Campaign and Multiplayer.