The South Korean gaming giant Neowiz has officially confirmed that the highly anticipated sequel to its breakout hit, Lies of P, has transitioned into a critical stage of its production cycle. According to the company’s Q1 2026 earnings report, the project has reached the "vertical slice" phase, signaling that the core mechanics, visual fidelity, and gameplay systems of the follow-up have been established in a demonstrable form. This milestone marks a significant step forward for Round8 Studio as it seeks to capitalize on the massive success of the original 2023 title, which established itself as one of the premier entries in the "Soulslike" genre.
The disclosure comes as part of a broader strategic update from Neowiz, which reveals a diversified pipeline of premium titles aimed at global markets. Alongside the Lies of P sequel, the publisher provided updates on several internal projects, including "Project Windi" and "Project Rubicon," while also detailing a controversial but technologically ambitious shift toward AI-assisted development workflows.
Understanding the Vertical Slice Milestone
In the landscape of modern AAA game development, a "vertical slice" is a pivotal internal milestone. It represents a fully polished, playable segment of the game—typically 10 to 30 minutes in length—that showcases every major system intended for the final product. This includes final-quality art assets, combat mechanics, user interface, sound design, and narrative delivery.
For the Lies of P sequel, reaching this stage suggests that the fundamental vision for the game has been solidified. Executives and stakeholders use the vertical slice to evaluate the game’s market potential and to ensure the creative direction aligns with the success of the first installment. Historically, games that successfully pass this stage move into full-scale production, where the remaining 80% to 90% of the content is built using the established framework.
The transition to this phase indicates that the sequel is no longer in the conceptual or prototyping stage. While a release date has not been set, the progression suggests that Neowiz is prioritizing a "quality-first" approach, likely aiming to address the high expectations set by the original game’s critical and commercial performance.
The Legacy of Lies of P: A Foundation for Growth
To understand the weight of the sequel’s development, one must look at the impact of the original Lies of P. Released in September 2023, the game offered a dark, Belle Époque-inspired reimagining of Carlo Collodi’s The Adventures of Pinocchio. It was met with immediate acclaim for its precise combat, unique "Weapon Assembly" system, and a "Lie System" that influenced narrative outcomes.
Within its first month of release, Lies of P surpassed one million units sold and reached over seven million players globally, aided by its day-one inclusion on Microsoft’s Xbox Game Pass service. It was frequently compared to FromSoftware’s Bloodborne, a comparison that the developers at Round8 Studio embraced while striving to carve out their own identity.
The confirmation of a sequel was first teased by game director Jiwon Choi in late 2023, alongside the announcement of a downloadable content (DLC) expansion for the first game. The Q1 2026 report confirms that this expansion, titled Overture, is also a key component of the franchise’s roadmap, serving as a bridge between the first game and the upcoming sequel.
Diversifying the Portfolio: Project Windi and Project Rubicon
Neowiz’s earnings report highlights that the company is not relying solely on the Lies of P IP to maintain its momentum in the premium PC and console space. Two other major projects are currently under development, each led by industry veterans.
Project Windi: A New Soulslike Contender
"Project Windi" is currently in the prototype stage. This title is a Soulslike RPG being directed by Kay Lee, who previously served as the director for Vindictus at Nexon. Lee’s background in high-action, physics-based combat suggests that Project Windi may lean more heavily into the "action" side of the Action-RPG subgenre. By bringing in talent with experience in successful long-term live-service action games, Neowiz appears to be diversifying its approach to the Soulslike formula.
Project Rubicon: Narrative-Driven Innovation
Simultaneously, "Project Rubicon" has entered the vertical-slice phase alongside the Lies of P sequel. This project is a narrative-driven RPG directed by Seungho Jin, the creative mind behind the acclaimed mystery-thriller Buried Stars. Jin is known for his ability to weave complex, choice-heavy narratives with deep psychological undertones. The move to bring a narrative specialist into a major RPG project suggests Neowiz is looking to compete with Western RPG giants by focusing on storytelling depth and player agency.
The Integration of AI in Game Development
One of the more striking revelations from the recent Neowiz disclosures is the company’s aggressive push into AI-assisted production. Round8 Studio is currently recruiting for an "AI Creator" role, a position designed to fundamentally alter how the studio produces art and assets.
According to the job description, the role involves utilizing generative AI tools such as Stable Diffusion and Midjourney to create "concept drafts" and "efficient AI art pipelines." The goal is to integrate these tools into existing workflows to significantly reduce production time and costs. Neowiz has expressed that this is not merely an experiment but a strategic move to build a sustainable development model in an era where AAA budgets are ballooning.
The use of generative AI in creative industries remains a point of intense debate. Critics argue that it may devalue the work of human artists and raise legal concerns regarding copyright and data scraping. However, Neowiz’s leadership has been vocal about the necessity of these tools. In previous statements, the company’s CEO noted that AI-assisted development is the only way for mid-sized publishers to compete with the sheer output volume of global conglomerates. The success of this "AI art pipeline" in the Lies of P sequel could serve as a case study for the rest of the gaming industry.
Chronology of Development: The Road to 2026
The trajectory of the Lies of P franchise has been remarkably consistent since its reveal:
- August 2022: Lies of P wins three awards at Gamescom, including "Most Wanted Sony PlayStation Game."
- September 2023: Lies of P launches globally to critical acclaim.
- November 2023: Director Jiwon Choi confirms both a DLC expansion and a full sequel are in development.
- Mid-2024: Neowiz reports that the original game has reached seven million players.
- Late 2025: Round8 Studio begins hiring specifically for AI integration to expedite the sequel’s production.
- Q1 2026: Neowiz officially announces that the sequel has reached the vertical-slice milestone and full-scale development is underway.
Market Analysis and Future Outlook
The "Soulslike" market has become increasingly crowded, with recent successes like Black Myth: Wukong and the ongoing dominance of Elden Ring: Shadow of the Erdtree. For Neowiz, the challenge lies in evolving the Lies of P formula enough to maintain relevance without losing the gothic charm that defined the first game.
Industry analysts suggest that the vertical slice phase is the most dangerous time for a project. If the "slice" fails to impress internal stakeholders or fails to solve the technical hurdles of the next generation of hardware (likely targeting Unreal Engine 5), projects can be rebooted or delayed. However, Neowiz’s stock stability and the steady progression of Project Windi and Project Rubicon suggest a high level of confidence in Round8 Studio’s output.
The sequel will likely lean into the "Wizard of Oz" teaser seen at the conclusion of the first game, suggesting an expanded universe that moves beyond the city of Krat. By combining established narrative hooks with a more efficient, AI-augmented development cycle, Neowiz is positioning itself as a major player in the global RPG market.
While the "three-star" reception from some critics for the first game suggested there was room for improvement in terms of originality, the commercial data proves there is a massive appetite for Neowiz’s specific brand of challenging, atmospheric gameplay. As the sequel moves into full production, the industry will be watching closely to see if the "vertical slice" can eventually be carved into a masterpiece that surpasses its predecessor.
