Should note that AFAIK there’s no confirmation that their project was in fact an actual Disco Elysium 2 (instead of a spiritual successor or something), and neither do we know whether a DE2 is not being worked on, just without people that made the first game.
Of course, it really does not bode well for any such game, but ever since Life is Strange 2/Tell Me Why vs True Colors where the former DLC-studio made a far better mainline game than the actual company making them managed, I am being more careful with considering a game “ded” just because the people involved with the game left.
🤷
To focus on the more important part: People got laid off. Which sucks. Hard.
Honestly since the original artist(s) left, I wasn’t interested in a follow-up anyway. A second disco Elysium without the same art and story direction would have little to no relation to the game that came before.