Mudang: Two Hearts, the PS5 action adventure unveiled at the Xbox Games Showcase in June 2025, looks finished. Its developer, the Korean studio EVR Studio, was declared bankrupt on June 5, 2026.
The news surfaced on Reddit, where a user named kimchamchi posted documents showing the bankruptcy and the end of development on the game. PlayStation LifeStyle dug further and found the studio had been in trouble for months. EVR Studio suffered mass layoffs about six months ago, then took its website offline and went quiet.
A stealth game set in Korea
Mudang was pitched as a third-person game in the vein of Splinter Cell and Metal Gear Solid, set on the Korean Peninsula. The studio was both developer and publisher, a fact confirmed when the game was announced. That leaves no outside backer to carry the project on.
Unless someone steps in to rescue it, PlayStation LifeStyle wrote, the game is dead.
The project is older than its reveal. Development began no later than 2023, and the game was once called “Project TH” with a release window in 2024.
