Fans of the dark Pinocchio soulslike have something real to hold onto: Neowiz has officially confirmed that the Lies of P sequel has moved out of the prototype phase and into full-scale production. The update came buried inside the company’s Q1 2026 earnings report — and while it’s not a trailer or a release date, it’s the most concrete signal yet that the sequel is well and truly happening.
Let’s break down what this actually means, what details have slipped through the cracks, and what kind of game Round8 seems to be building.
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What “vertical slice” actually means — and why it matters
Neowiz specifically states in the report that the Lies of P sequel is now in the vertical slice phase. If that phrase means nothing to you, here’s the short version: a vertical slice is an internal, polished build of the game designed to test and validate the experience before full-scale development kicks in.
At this stage, the team is evaluating:
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Core gameplay loop and how combat feels in practice
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Visual fidelity and overall art direction
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Narrative pacing and tone
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Technical performance and engine behavior
Neowiz puts it this way: the project has “completed validation of its core fun elements and moved into a phase to enhance the actual play experience and overall polish.” In plain English — the foundation is solid, and the team is now building on top of it.
A vertical slice is not a playable demo or a press build. It’s an internal compass. When it passes, the entire team aligns on what the game is — and development accelerates significantly from there.
Unreal Engine 5, open world hints, and what we know technically
According to multiple reports, the Lies of P sequel is being developed on Unreal Engine 5 — a meaningful upgrade from the original, which also ran on Unreal but on an older version. UE5 opens the door to more expansive environments, higher geometric detail, and lighting systems that could make Krat’s successor feel genuinely next-gen.
There’s also been persistent speculation about an open world component. Earlier job listings from Round8 Studio hinted that the team was exploring open world design, though nothing has been officially confirmed. If true, it would represent a dramatic structural shift from the tight, interconnected corridors of the original.
Narrative is now Round8’s top priority
Perhaps the most interesting detail in Neowiz’s report isn’t about the game itself — it’s about who’s making it and how they think about storytelling. The company explicitly names narrative as one of Round8’s “core competencies,” and it’s backing that up with hires.
Two new directors have joined the studio: Seung-ho Jin and Kay Lee, both of whom come from scenario-writing backgrounds. That’s a deliberate signal. The original Lies of P already had a surprisingly rich story layered beneath its combat — a mechanical boy learning to lie, a city hollowed out by madness, moral choices that actually stung. The sequel, it seems, wants to go deeper.
For anyone who played the Overture DLC — which won Best Game Expansion at the Golden Joystick Awards and DLC of the Year at the Ultra Game Awards — this direction makes a lot of sense. That expansion showed what Round8 can do with focused, character-driven storytelling. Now they’re staffing up to do more of it.
The bigger picture: Neowiz’s six-game pipeline
The Q1 2026 report didn’t just update us on Lies of P 2. It revealed the full scope of Neowiz’s ambitions: six projects in development simultaneously. The sequel sits at the center, but the surrounding pipeline tells its own story.
Co-CEO Sean Kim has made Neowiz’s long-term strategy clear: the company wants to build franchises that retain players for a decade, not just score a one-time hit. Lies of P — which sold over four million copies and gave Neowiz record revenue — is the proof of concept. Everything else in the pipeline is building on that foundation.
Why the original earned this sequel
It’s worth stepping back and remembering why the Lies of P sequel is such a big deal. The 2023 original launched into a genre dominated by FromSoftware — Dark Souls, Bloodborne, Elden Ring — and held its own. That’s genuinely rare.
What set it apart wasn’t just polished combat (though the weapon assembly system and P-Organ upgrades were excellent). It was the commitment to world-building. The city of Krat, decayed and mechanical and beautiful, felt like a place with actual history. Pinocchio’s arc — lying to survive, questioning what makes someone human — gave the story more weight than most soulslike games attempt.
The game scored 83 on Metacritic, hit 7 million players in its first six months, and generated nominations at BAFTA. Overture only reinforced that Neowiz had something worth protecting. So yes — this sequel has earned the excitement.
When should we expect news and a proper reveal?
No release window, no title, no trailer. That’s the reality right now. But the transition from prototype to vertical slice is a meaningful milestone — it means the experimental phase is over and actual production is underway.
With several major gaming showcases still on the 2026 calendar, optimists are already speculating about a possible teaser reveal this year. Realists will note that vertical slice to launch typically takes two or more years, depending on scope. Either way, the next major signal will almost certainly be a proper announcement — and when that comes, it’ll be worth paying attention to.
For now, if you haven’t played Overture yet, that’s the best way to prepare. It’s short, it’s brilliant, and it ends exactly where you’d want a sequel to begin.
