Eidos-Montréal

Founding and early development

Eidos Interactive announced its intention to establish a studio in Montreal in February 2007, with the subsidiary formally incorporated the following month. The studio officially opened its doors on 26 November 2007 under the leadership of general manager Stéphane D'Astous. From the outset, Eidos-Montréal adopted a distinctive development philosophy, employing smaller teams that worked on projects over longer cycles compared to industry norms, with the studio's total workforce planned to reach around 350. Its inaugural projects were announced swiftly, with work beginning on a new entry in the Deus Ex series in 2007 and a fourth Thief game revealed in May 2009. These early commitments positioned the new Canadian studio as a custodian of two of Eidos's most cherished intellectual properties, setting a trajectory focused on narrative-driven, immersive experiences.

Corporate transitions and studio growth

The studio's corporate parentage changed in 2009 when Eidos Interactive was acquired by Square Enix Limited, bringing Eidos-Montréal under Japanese ownership. Internal tensions surfaced in July 2013 when founder Stéphane D'Astous resigned, citing irreconcilable differences with Square Enix management, a sentiment he later expanded upon by criticising the corporate structure as a 'trainwreck in slow motion'. The studio faced a round of layoffs in March 2014, affecting 27 employees. Despite these challenges, Eidos-Montréal continued to expand, surpassing 500 employees by May 2018. Its portfolio grew through integration, as the Eidos-Shanghai studio, originally established in 2008 for outsourcing, was folded into Eidos-Montréal in 2019. The studio also expanded within Quebec, announcing a new research and development satellite, Eidos-Sherbrooke, in June 2020 to leverage local university talent.

The most significant corporate shift occurred in 2022 when Embracer Group reached an agreement to purchase Square Enix's European studios, including Eidos-Montréal. The acquisition was completed on 26 August 2022, with the assets held under the CDE Entertainment banner. This change precipitated immediate restructuring, as Eidos-Shanghai was detached and transferred to another Embracer company, Gearbox Entertainment, in November 2022. The Eidos-Sherbrooke studio was closed in late January 2023. Under Embracer, Eidos-Montréal confirmed it was developing multiple projects using Unreal Engine 5, signalling a new technological direction. During the acquisition announcement, Embracer expressed interest in pursuing sequels, remakes, and remasters of the studio's established franchises like Deus Ex and Thief.

Major projects and workforce changes

Eidos-Montréal's development history is marked by both celebrated releases and significant cancellations. A major partnership with Marvel Entertainment, announced in January 2017, led to the studio co-developing Marvel's Avengers with Crystal Dynamics and later taking the lead on Marvel's Guardians of the Galaxy, which was announced during E3 2021 and released that same year. The studio also faced the cancellation of projects, including a Deus Ex game in early development that was reported in November 2022 and then cancelled by Embracer Group in January 2024 after two years of work. These corporate decisions have been accompanied by several rounds of layoffs that have reduced the studio's headcount substantially in recent years. The studio has also been involved in projects that did not reach release, such as a cancelled game from 2012 codenamed 'Fantasy Project W', which was reported on by journalist George Weidman in 2018.

• January 2024: 97 employees laid off following the Deus Ex cancellation.
• March 2025: 75 employees laid off.
• March 2026: 124 employees laid off, including studio head David Anfossi.

Despite these reductions, Eidos-Montréal has secured new work as a support developer for other studios. In June 2024, it was revealed the studio was assisting with the development of the upcoming Fable title. A year later, in June 2025, Eidos-Montréal was announced as a co-developer for Grounded 2 alongside Obsidian Entertainment, with both announcements made during Microsoft's Xbox Games Show events. This co-development work, reported in 2022 to involve multiple projects for Xbox Game Studios, represents a strategic shift for the studio following the cancellation of its internal major projects.

Dawn Engine and technological evolution

A significant technological achievement for Eidos-Montréal was the creation of its proprietary Dawn Engine, revealed in December 2014. Developed because the studio felt its creative vision was limited by existing tools, the engine was built on a heavily modified version of IO Interactive's Glacier 2 technology, which itself powered Hitman: Absolution. The graphics components were almost completely rewritten to harness the power of contemporary PCs and eighth-generation consoles. The creation of the Dawn Engine was described as a challenging endeavour even for the studio's most experienced staff, undertaken to fully leverage new hardware and avoid the limitations of licensed technology.

The Dawn Engine featured an improved conversation system and cutscenes compared to its predecessor. It included systems for volumetric lighting and air density, as well as support for dense indoor and outdoor areas. Its hair technology was an improved version of AMD's TressFX, developed by the in-house research and development team Labs. Built on an entity system, Dawn allowed designers to create new behaviours without the assistance of programmers, and it made use of Umbra occlusion culling. The engine was first used for Deus Ex: Mankind Divided and later for Marvel's Guardians of the Galaxy, which added ray tracing and DLSS support, as well as working in-game mirrors.

However, following the 2022 acquisition by Embracer Group, Eidos-Montréal made a strategic shift away from maintaining its own engine. The studio announced it would adopt Unreal Engine 5 for future projects to allow developers to focus on game content rather than the dual challenge of creating both a game and its underlying technology. Research and development work, including that of the Eidos-Labs department, was largely offloaded to the short-lived Eidos-Sherbrooke studio before its closure in 2023. This move aligned with Embracer's revelation that Eidos had several projects in development all using Unreal Engine 5.

Games developed

Eidos-Montréal has been the lead developer or a major co-developer on several flagship titles since its founding. Its work has primarily focused on continuing beloved franchises and adapting major comic book properties into video games. The following table lists the studio's primary released titles and their years of publication, highlighting its central role in the Deus Ex and Thief series as well as its Marvel collaborations. The studio head at the time, David Anfossi, commented on the 2018 report about a cancelled project, stating he was unable to comment but found the video report 'very well done' and 'very funny to watch', noting that project cancellations are a common occurrence in the industry.

Organizational structure and satellite studios

Throughout its history, Eidos-Montréal has managed several satellite studios and undergone internal restructuring. The Eidos-Shanghai studio was established in 2008 as an outsourcing arm before being fully integrated into Eidos-Montréal in 2019. Following the Embracer acquisition in 2022, it was detached and moved to Gearbox Entertainment, becoming Gearbox Studio Shanghai. In June 2020, Square Enix announced the creation of Eidos-Sherbrooke, a new research and development studio in southern Quebec led by Julien Bouvrais. It was envisioned to initially operate with 20 staff, growing to 100, and to incorporate computing technology from Université de Sherbrooke and Bishop's University. This studio was planned to move to a permanent location in 2021 but was closed in late January 2023 after the ownership change. The internal Eidos-Labs research and development department was also part of this structure, responsible for advancements like the improved hair technology in the Dawn Engine.

Recognition and workplace culture

During its operation, Eidos-Montréal received recognition for its workplace environment within the competitive video game industry. The studio was named one of the Best Places to Work by the industry publication GamesIndustry.biz. It also earned a spot on the list of Montréal's Top Employers, an honour conferred by the Canada's Top 100 Employers competition. These accolades highlighted the studio's efforts to maintain a positive and competitive work culture in Montreal's substantial technology and gaming sector, even as the broader industry faced cycles of crunch and instability. The recognitions came during a period of growth for the studio, which had over 500 employees by 2018, prior to the subsequent rounds of layoffs that began in the 2020s.

Questions about Eidos-Montréal

Who owns Eidos-Montréal?

As of August 2022, Eidos-Montréal is owned by the Swedish conglomerate Embracer Group. The studio was purchased as part of Embracer's acquisition of Square Enix's European studios. The assets are held under Embracer's CDE Entertainment division. Prior to this, Eidos-Montréal was owned by Square Enix from 2009 onwards, and before that, it was founded as a subsidiary of the original Eidos Interactive in 2007. Embracer has expressed interest in developing new entries in the studio's classic franchises like Deus Ex and Thief.

Has Eidos-Montréal faced layoffs?

Yes, Eidos-Montréal has undergone several rounds of layoffs in recent years, particularly following its acquisition by Embracer Group. In January 2024, the studio laid off 97 people after Embracer cancelled a new Deus Ex game. Further layoffs occurred in March 2025 (75 employees) and most significantly in March 2026, when 124 employees were let go, including the studio head, David Anfossi. Earlier layoffs under Square Enix ownership affected 27 employees in March 2014. These workforce reductions reflect broader restructuring within the parent companies.

What game engine does Eidos-Montréal use?

Eidos-Montréal historically developed and used its own proprietary technology called the Dawn Engine for titles like Deus Ex: Mankind Divided and Marvel's Guardians of the Galaxy. However, after the 2022 acquisition by Embracer Group, the studio announced a strategic shift. It is now using Unreal Engine 5 for its ongoing projects, a move intended to allow the team to concentrate on game content rather than the complexities of engine development. Embracer confirmed the studio had multiple projects using Unreal Engine 5 in development at the time of the acquisition.

Is Eidos-Montréal working on a new Deus Ex game?

As of early 2024, a new Deus Ex game that was in very early development at Eidos-Montréal was cancelled by parent company Embracer Group. The project had been in development for approximately two years before its cancellation, which was part of broader restructuring and cost-cutting measures within Embracer. The studio's current publicly announced projects involve co-development work on titles like Fable and Grounded 2 for other studios. In 2022, prior to the cancellation, Embracer had expressed interest in sequels for the Deus Ex franchise.

Where in Canada is Eidos-Montréal located?

Eidos-Montréal is headquartered in Montreal, Quebec. The studio was founded there in 2007 and has remained a key part of the city's substantial video game development cluster. It briefly expanded within the province with a satellite research and development studio in Sherbrooke, announced in June 2020 and led by Julien Bouvrais, but that studio was closed in January 2023 following the Embracer Group acquisition. The Sherbrooke studio was intended to collaborate with local universities and grow to 100 staff.

What is Eidos-Montréal known for?

Eidos-Montréal is known as a Canadian video game developer that is part of Embracer Group. The studio is particularly recognized for working on major franchises, beginning with a Deus Ex project announced in its founding year of 2007 and the fourth Thief installment announced in 2009. It developed Marvel's Guardians of the Galaxy, announced in 2021, and created its proprietary Dawn Engine technology for titles like Deus Ex: Mankind Divided and Guardians of the Galaxy. The studio was also recognized as one of the Best Places to Work by GamesIndustry.biz and as a top employer in Montreal. It has been involved in partnerships, such as the 2017 Square Enix and Marvel Entertainment deal to create multiple games, and has supported development for other projects like the upcoming Fable.

Sources and further reading

• Eidos-Montréal (Wikipedia)
• Eidos-Montréal | Crafting Emotions (eidosmontreal.com)
• Eidos Montreal, 4 Day Work Week Jobs (4dayweek.io)

Checked by the Yadude Books desk. Last updated 2026-11-04.