Paradox Interactive cited "unexpected issues occurring too often" as the reason for the repeated delays of "Prison Architect 2". The company has also been dealing with high-profile failures and a string of studio shutdowns and layoffs.
Tectonic studio's employees reportedly found out about the studio's closure through a public announcement. According to a laid-off developer, the team had been in "purgatory" for a month before the closure, trying to prove they were worth launching and exploring options like finding potential buyers or going indie. Despite this, they heard "virtually nothing back" from Paradox Interactive, the parent company. The studio was shut down just hours after the cancellation of their game, Life by You, in a decision that affected all 24 staff members.
Tectonic had been working on "Life by You" since 2019. The original early access release date was set for September 2023, but it was delayed to May 2024. Paradox then announced an additional delay to June 4, before indefinitely delaying the game two weeks before the scheduled release.