Game Development

PCF Group S.A. has entered into a formal Prototype Development Agreement with Sony Interactive Entertainment LLC to collaborate on the creation of a new video game prototype, currently identified by the codename Project Delta. This partnership centers on the development of a title based on intellectual property owned by Sony, marking a strategic expansion of the developer’s portfolio within the global gaming market.

The collaboration follows a work-for-hire business model, wherein the developer provides professional production services in exchange for agreed-upon compensation. The project is structured around a series of defined milestones, with specific operational requirements and payment schedules outlined in the agreement’s technical annex. The terms of this arrangement align with standard industry practices for prototype development and do not deviate from typical contractual frameworks for similar high-profile collaborations.

This agreement serves as a direct implementation of the corporate strategy updated by the developer in early 2023. By securing this contract, the firm fulfills its stated objective of pursuing high-value partnerships with reputable industry leaders to diversify its revenue streams through commissioned development work. The project represents a significant step in leveraging the developer’s technical expertise to support the production goals of major international publishers, reinforcing its position as a reliable partner in the AAA gaming sector.

PCF Group S.A. has officially suspended development work on Project Gemini, a title previously produced under a work-for-hire agreement with Square Enix Limited. This decision, effective June 1, 2025, follows the expiration of the existing content rider and the absence of a subsequent agreement to cover future production milestones. The cessation of operations stems from a lack of communication from the publisher regarding the project's status, creating significant uncertainty surrounding the publisher's intent to finalize the game.

The scope of this development halt covers the European operations of the PCF Group, specifically impacting the contractual relationship established under the original production and publishing agreement. Given the publisher's failure to provide terms for continued development or clear guidance on the project's future, the management board currently views the prospect of ongoing collaboration on Project Gemini as highly doubtful.

This strategic shift marks a definitive pause in the studio's involvement with the project as of mid-2025. The company has indicated that it will provide further updates as the situation evolves and more information regarding the status of the collaboration becomes available. The decision reflects the inherent risks associated with work-for-hire models when contractual renewals and publisher alignment are not secured in a timely manner.

PCF Group S.A. has officially suspended all development work on the self-published project Bifrost. This strategic decision follows a series of recent organizational adjustments, including the prior reduction of the project’s development team and the impairment of associated assets. The move marks a significant shift in the company’s operational focus as it navigates current financial constraints and resource allocation challenges.

The primary catalyst for this suspension is the failure to secure a new execution agreement for the Gemini project, which was being developed in Europe under a work-for-hire model for Square Enix Limited. A subsequent internal analysis of the company’s cash flow revealed that the loss of this partnership rendered the continued self-funding and production of Bifrost financially unviable. Consequently, the company lacks the necessary organizational resources and capital to sustain the project’s development and eventual market release.

This decision reflects a broader restructuring effort within the company, occurring in tandem with the concurrent halt of development on the Gemini project. By suspending Bifrost, the organization aims to mitigate further financial risk in light of its updated liquidity projections. Management intends to provide further updates regarding the implications of this decision and the company’s future strategic direction through subsequent regulatory disclosures.

PCF Group S.A. has initiated a workforce reduction affecting over 60 employees previously assigned to the development of Project Gemini. This decision follows the formal suspension of all development activities related to the title, which was being produced in Europe under a work-for-hire agreement with Square Enix Limited. The restructuring is a direct consequence of the publisher’s failure to provide a subsequent executive agreement, rendering the future of the collaboration and the project’s continuation untenable.

The termination of the development team marks a significant shift in the company’s operational strategy regarding this specific partnership. By failing to secure a follow-up contract, the company faced critical uncertainty regarding the project's viability, necessitating the immediate downsizing of the dedicated staff. This action reflects the inherent risks associated with the work-for-hire business model, where project continuity is heavily dependent on the publisher’s commitment to ongoing executive agreements.

Management maintains that the current status of Project Gemini remains uncertain, and no further development work is scheduled at this time. Future updates regarding the project’s status or potential changes to the company’s relationship with the publisher will be disclosed as they arise. This reduction represents a definitive step in mitigating the financial and operational impact caused by the cessation of work on the project.

PCF Group S.A. has initiated a significant workforce reduction following the recent suspension of development on Project Bifrost. This strategic decision marks a shift in the company’s internal resource allocation, as the project was previously being developed under a self-publishing model funded entirely by the company’s own capital. The move reflects a broader effort to streamline operations and mitigate financial exposure associated with the project’s cessation.

The restructuring impacts over 50 employees who were directly involved in the development of Project Bifrost. To retain institutional knowledge and maintain operational continuity, the company has extended offers to the remaining staff members to transition into roles within other active projects currently under development by the group. This approach aims to preserve human capital while pivoting resources toward more viable production pipelines.

These actions represent a definitive step in the company’s management of its current portfolio. By reassigning personnel and reducing the headcount associated with the halted project, the organization is adjusting its cost structure to align with its updated strategic priorities. Future updates regarding the status of Project Bifrost will be disclosed as they arise, ensuring transparency regarding the company’s ongoing development activities and organizational adjustments.

PCF Group S.A. has officially scheduled the global release of the title Tracked: Shoot to Survive for November 13, 2025. This announcement confirms the commercial launch timeline for the project, which was previously developed under the internal codename Bison. The game is specifically optimized for the Meta Quest 3 and Meta Quest 3S virtual reality hardware platforms.

The decision to finalize the release date follows a multi-year development cycle, with initial project disclosures dating back to late 2023 and further updates provided in early 2025. By targeting the Meta Quest ecosystem, the company is positioning this release within the growing sector of standalone virtual reality gaming. This strategic move reflects the studio's ongoing efforts to expand its portfolio within the immersive technology market.

The announcement serves as a formal regulatory disclosure, ensuring transparency regarding the company’s production pipeline and commercial milestones. As the launch date approaches, the focus shifts toward the final deployment of the software to the specified VR platforms. This release represents a significant step in the company's current development roadmap, marking the transition of the project from the production phase to active market availability.

The updated strategy for People Can Fly (PCF Group) marks a transition toward a self-publishing model while maintaining its core expertise in developing high-end shooter games. Having successfully completed its post-IPO objectives, including the expansion of production capacity and the establishment of multiple creative studios across Europe and North America, the company now aims to scale its operations to support the simultaneous development of several ambitious projects. The primary thesis centers on leveraging internal intellectual property and proprietary technology, specifically the PCF Framework and Unreal Engine 5, to deliver high-quality gaming experiences while capturing a larger share of revenue through self-publishing.

Key operational findings highlight a shift from a single-project focus to a multi-project production model supported by over 600 employees. The company has implemented agile methodologies and Centers of Excellence to improve efficiency and risk management. Financial targets are aggressive, with a goal of reaching 3.0 billion PLN in total revenue between 2023 and 2027. To achieve this, PCF plans to release six games over the next four years, focusing on the Games-as-a-Service (GaaS) model to ensure long-term player engagement and recurring revenue. Projects currently in development include Gemini, Dagger, Bifrost, Victoria, and Thunder, with a mix of work-for-hire and self-published titles.

The scope of this strategy covers global operations across seven studios, including locations in Warsaw, Rzeszów, Kraków, Katowice, Newcastle, Montreal, and New York. To fund this expansion, the company intends to raise between 205 million and 295 million PLN through a new share issuance. This capital will be directed toward scaling development teams and supporting the production of its self-published portfolio, with no dividend payments expected before 2025.

PCF Group S.A. has formally announced a revision to its financial reporting schedule for the third quarter of 2025. The primary purpose of this communication is to notify stakeholders and regulatory bodies of a delay in the release of the company’s consolidated quarterly report, which was originally scheduled for publication on November 26, 2025.

The updated timeline establishes December 1, 2025, as the new date for the disclosure of the consolidated financial results for the Group. This adjustment serves to align the company with its ongoing reporting obligations under the relevant financial regulations governing issuers of securities. The change represents a brief postponement of five days from the previously communicated deadline.

This administrative update pertains exclusively to the corporate financial disclosure schedule of PCF Group S.A. for the specified fiscal period. No further details regarding the underlying financial performance or operational status of the company were provided in this notification, as the announcement is strictly limited to the procedural modification of the reporting calendar.

PCF Group S.A. has officially entered into formal negotiations regarding a new service agreement and statement of work with a prominent, unnamed publisher. This development follows the receipt of a formal proposal on December 20, 2025, which the company analyzed before committing to the negotiation process on December 23, 2025. The potential partnership centers on the development of a new video game title, structured under a work-for-hire model where the company will act as the developer in exchange for agreed-upon compensation.

The decision to pursue this collaboration aligns with the company’s long-term strategic goals, specifically the updated corporate strategy announced in January 2023. This strategy explicitly prioritizes the pursuit of high-quality work-for-hire opportunities with reputable industry partners to diversify revenue streams and leverage internal development capabilities. The terms currently under discussion are consistent with standard service agreements typical for large-scale game development projects within the global interactive entertainment industry.

While the initiation of these talks marks a significant step toward securing a new project, the company emphasizes that the negotiations do not guarantee a final binding agreement. The outcome remains subject to the successful conclusion of discussions between the parties. Further updates regarding the status of the contract will be disclosed to the public once a definitive agreement is reached or if the negotiations are terminated.

PCF Group S.A. has initiated significant asset impairment charges following a performance review of the project Victoria, specifically the game Lost Rift, alongside the PCF Framework and associated intangible assets. This decision, finalized in November 2025, reflects a strategic reassessment of the carrying value of these assets as of September 30, 2025. The impairment was triggered by disappointing sales data following the early access launch of Lost Rift on September 25, 2025, compounded by unfavorable player reception and a downward revision of projected future cash flows.

The financial impact of these adjustments is substantial, affecting both the company’s standalone and consolidated financial statements. On a standalone basis, the company recognized an impairment of 88% of the relevant asset value, resulting in a reduction of 126,348 thousand PLN. On a consolidated level, the impairment accounts for 85% of the asset value, totaling 92,045 thousand PLN. While these figures significantly lower the value of fixed assets reported on the balance sheet for the third quarter of 2025, the charges are non-cash in nature and do not impact the company’s EBITDA.

Management maintains the possibility of reversing these impairment charges, either in whole or in part, should market conditions or the commercial performance of the affected assets improve. These figures remain estimates and are subject to final audit verification before the publication of the full 2025 financial statements. The scope of this adjustment is limited to the specific cash-generating unit associated with the Lost Rift project and its supporting technological framework within the broader PCF Group portfolio.

I N T E G R AT E D R E P O R T 2 0 2 0 The BANDAI NAMCO Group develops entertainment-related products and services in a wide range of fields, including toys, network content, home video games, amusement machines, amusement facilities, and visual and music content. “Dreams, Fun and Inspiration” are the Engine of Happiness.

The game development industry is currently navigating a period of profound structural instability, characterized by widespread workforce reductions and a pervasive sense of professional anxiety. Despite the rapid integration of artificial intelligence, the primary driver of current career displacement remains studio restructuring rather than technological replacement. While the majority of the workforce remains employed in hybrid or remote roles, a significant portion of professionals are actively reassessing their career trajectories. This climate of cautious realism is reflected in market sentiment, where nearly 40 percent of industry participants anticipate further decline, leading to increased emotional fatigue and a shift in priorities toward time-based benefits, such as the four-day workweek, over traditional office perks.

Geographically, the industry maintains a clear hierarchy in compensation, with North America consistently commanding the highest salary tiers across all seniority levels. In contrast, Central and Eastern Europe continue to function as the most cost-effective hubs for talent acquisition. This regional disparity underscores a broader trend of geographic diversification, as studios balance the need for specialized expertise with the economic realities of global operations. Although the workforce remains mobile, the prevalence of remote work has effectively anchored many professionals, creating a distinct divide where on-site employees demonstrate a significantly higher propensity for international relocation compared to their remote counterparts.

The current landscape is defined by a maturing workforce dominated by mid-to-senior level professionals, accompanied by a concerning decline in new entrants. This demographic shift, coupled with the ongoing volatility in employment, has necessitated more flexible recruitment strategies. Studios are increasingly moving away from traditional hiring models, favoring diverse solutions that range from subscription-based flat-fee packages to comprehensive recruitment process outsourcing. As the industry continues to evolve, these data-driven benchmarks serve as a critical framework for both studios and professionals attempting to navigate the complexities of global compensation and shifting labor market dynamics.