Studio Behind Upcoming Xbox Showcase Surprise Files for Bankruptcy

If there was any lingering uncertainty, it’s now clear that you won’t be experiencing Mudang: Two Hearts on Xbox Series X/S or any other platform. This visually striking stealth-action game reminiscent of Splinter Cell, developed in South Korea, appears to be dead in the water following the studio’s recent bankruptcy announcement.

A court document from South Korea’s corporate register surfaced on the Mudang subreddit, revealing that the 11th Division of the Seoul Bankruptcy Court declared EVRStudio bankrupt on June 5. Established in 2016, the studio first gained attention with a VR exhibit for the Gansong Art Museum. It later shifted focus to Metaverse content for marketing purposes before attempting to leverage its technical skills into game development.

The highlight of their efforts was the 2025 unveiling of Mudang: Two Hearts during Xbox’s summer showcase. The third-person shooter showcased action sequences that seemed almost too good to be true, with a projected release window in 2026. The trailer attracted nearly half a million views, and the feedback was overwhelmingly positive. Comments like “This looks insane!” and “Korean Splinter Cell. Amazing.” reflected the excitement surrounding the game.

However, instead of becoming another unexpected success from South Korea, Mudang: Two Hearts has turned into yet another example of high-profile vaporware. Reports earlier this year indicated that EVR was already struggling financially and had begun laying off developers. Subsequent coverage from Korean media highlighted the company’s financial woes, exacerbated by a decline in investment interest in the Metaverse following the pandemic. With revenue dwindling, losses began to accumulate.

Was Mudang: Two Hearts ever close to being a complete game, or even a functional one? The lack of any rescue or acquisition attempts for the project raises further questions. The hope for a spiritual successor to Splinter Cell remains, but Ubisoft continues to grapple with delivering even a remake of the original.