Since losing out on the Dead Island 2 project, developer Yager Productions has now declared insolvency to 'protect staff'. It's a sub division of Spec Ops: The Line creatorwho continues unaffected.
The "single-purpose company" has made the decision as a "direct result from the early termination" of the Dead Island 2 game with them, as publishertook the project elsewhere.
The reason for the split was given as "respective visions of the project fell out of alignment" between the development team and publisher. It's not all bad for Yager though as work continues on Dreadnaught the large starship battler where players captain massive ships.
"As single-purpose company, Yager Productions GmbH was assigned to the development of the Deep Silver title Dead Island 2," said managing director Timo Ullmann. "The insolvency filing is a direct result from the early termination of the project and helps protecting our staff. In the course of the proceedings, we gain time to sort out the best options for reorganizing this entity."
As of yet there is no official announcement on who continues Dead Island 2 development.