505 Games and Indolphinity Strike a Global Deal to Build the Next Wuchang Game

505 Games and Chinese studio Chengdu Recursive Dolphin Technology, operating under the brand name Indolphinity, have officially announced a development and publishing agreement for a sequel to the highly successful action RPG, Wuchang: Fallen Feathers. For context on other major publisher studio deals, see our Ubisoft record loss and Hexe roadmap coverage.

The announcement, made on July 29, 2026, confirms that the sequel is currently in the early phases of development.

The original Wuchang: Fallen Feathers, released on July 24, 2025, achieved immense success, attracting over 131,000 concurrent Steam players at launch and reaching an impressive 5 million players worldwide across PC and consoles.

A New Chapter With the Original Creator

The sequel's development represents a reunion of sorts. Indolphinity is a new studio founded by Xia Siyuan, the creator and original game director of Wuchang: Fallen Feathers. Xia left the original developer, Leenzee, earlier this year. Following his departure, the remaining staff reportedly declined a proposal to transition into outsourcing work, leading to the disbandment of Leenzee's Wuchang team.

In April 2026, Digital Bros Group, the parent company of 505 Games, acquired the Wuchang intellectual property rights for approximately €4 million ($4.6 million). This acquisition paved the way for the new partnership. Under the terms of the agreement, Indolphinity will spearhead the creative development of the sequel, while 505 Games will provide funding and handle exclusive global publishing. Digital Bros will support the project with an initial investment of approximately €21.5 million.

Preserving Cultural Authenticity

Both parties have emphasized a shared commitment to preserving the cultural identity and creative vision that made the original game a standout in the Soulslike genre.

Raffi Galante, Co-CEO of Digital Bros, stated: "We strongly believe in Wuchang as a long-term global franchise, and partnering with Xia Siyuan and Indolphinity is a natural step in building its future. From the outset, our priority has been to safeguard and amplify the original creative vision, while equipping the development team with the resources and publishing expertise needed to succeed worldwide."

Xia Siyuan echoed this sentiment, highlighting the importance of the team's roots: "As a homegrown development team made up of Chinese creators, we have always believed that a rich cultural heritage is the essence of our games and their competitive strength. We listen closely to the real voices of players and the community, and we remain firmly devoted to our original creative aspirations and cultural foundations."

To further bolster the development and publishing efforts, Digital Bros Group plans to establish a dedicated subsidiary in Chengdu to work closely with Indolphinity.

While the sequel does not yet have an official title, release date, or confirmed platforms, the announcement promises that Wuchang's story is far from over. For more publisher and studio news, see our Capcom Pragmata launch numbers coverage.