Lies of P 2 Is in Development and Unreal Engine 5 Could Raise the Tension

According to Neowiz's first-quarter earnings report, Lies of P 2 has cleared prototype review and moved into full production; as of 2026-05-11, the company has also confirmed the sequel is being built in Unreal Engine 5. That update matters because Lies of P is no longer just a critical hit. The original holds an Overwhelmingly Positive rating on Steam, passed 7 million players within 6 months of launch, sold more than 4 million copies worldwide, and helped push Neowiz to record revenue.

When I think back on what made Lies of P work, it was never cheap jump-scare design. Its pressure came from somewhere slower and more controlled, folding steampunk, warped fairy-tale imagery, and Soulslike pacing into a suffocating mood that kept tightening around you. That is a big reason it is now seen as one of the most successful adaptations in the Soulslike space in recent years, and the article argues it even helped inspire other games, including Nioh 3.

What gives this latest sequel update real weight is the source. This is not vague "the project exists" messaging. The earnings report explicitly says the prototype passed review and that full production is underway. For players, wording like that means Neowiz is no longer testing the market. It is treating Lies of P as a long-term franchise IP. The same report also says the first game's DLC stabilized revenue this quarter and accelerated work on the sequel, which underlines the broader point: the original did not just earn praise, it generated the money needed to keep the series moving.

The part that gives me more pause is Unreal Engine 5. An engine upgrade is often reduced to shinier visuals, heavier effects, and louder spectacle, but that is not what matters most for a game like Lies of P 2. The real question is whether it can deepen the texture of space, the layering of light and shadow, and the oppressive feel of its environments. If the art direction and level design stay disciplined, Unreal Engine 5 could push that dead, cooling-street atmosphere much further. If the team chases technical spectacle for its own sake and turns the pacing into a theme-park procession, though, the mood could slide from eerie to noisy very quickly.

There are also outside reports hinting that the sequel may adopt a more open world design philosophy. That is where I would stay cautious. Soulslikes do not automatically improve when the map gets bigger, and fear does not become stronger just because the road gets wider. Too much openness can dilute pressure instead of intensifying it. Still, if Neowiz can preserve dense exploration, strong shortcut design, and narrative concentration, a somewhat broader structure would not necessarily be a bad thing. It might even turn the feeling of being lost into a new kind of psychological torment.

From an industry perspective, Lies of P already looks like more than a one-off success. The article frames it as one of the standout adaptation stories in recent Soulslike history, and with Neowiz reaching record revenue, this IP could realistically become one of the company's pillar brands going forward. There are also reports that the original Lies of P may come to Nintendo Switch 2, which, if it happens, would expand the series even further. For now, Neowiz has not shared any more details about Lies of P 2 in the earnings report.

If you have not played the first game yet, the recommendation is straightforward. If you like the gloomy aesthetic of Bloodborne and can handle parry timing plus resource-management pressure, it is easy to recommend. If all you want is monsters lunging into your face and constant high-frequency scares, it probably will not satisfy you in the way you expect. The real strength of Lies of P was never that it shouted at you. It made you stand under a streetlamp for a few extra seconds and feel the cold reach your back first.