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Dead Island 2 might finally release at some point in 2023

Yes, it's still in development.

Deep Silver's parent company, Embracer Group, has confirmed Dead Island 2 is still in development, but it's not expected to be released until some point during the company's next fiscal year which begins in March 2023.

A question regarding the game's development was asked during the Embracer Group’s latest financial results via a Q&A. The question was regarding whether the game has an official release window attached or not, and what we can expect from a title that's been in development for ten years.

According to Embracer CEO Lars Wingefors he is unable to discuss Dead Island 2 because it’s "not announced as such from the publisher."

"But, we have on unannounced triple-A title - that you think is Dead Island 2," Wingefors replied.

"It's hard for me to comment further on that, but I am excited about unannounced titles," he continued with a bit of a laugh and knowing grin of sorts.

The game is discussed here around the 1:52:52 mark.

Dead Island 2 was first announced back in 2014, and it had been in development for at least two years before its announcement. Publisher Deep Silver would go on to confirm the game was still in development as of 2017. Things went relatively quiet after that, but in 2019, Wingefors confirmed twice that it was still in development.

Last we heard, the game was in development with Homefront: The Revolution studio Dambuster, which took over from Sumo Digital, who had taken over development from the title's original developer which back in 2012 was rumored to be Yager. Techland was the developer of the first Dead Island game.

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