A sequel to the 2025 soulslike Wuchang: Fallen Feathers is in development, with the original game's creative lead Xia Siyuan returning to direct. However, the follow-up will not be created by the original development studio, Leenzee. Instead, Siyuan will helm the project at a newly formed studio called Chengdu Recursive Dolphin Technology, also referred to as Indolphinity.

This shift follows reports from April 2026 that Siyuan had departed from Leenzee towards the end of 2025. These departures were reportedly followed by many of Leenzee's core team members. The exact number of original developers who have moved with Siyuan to the new studio remains unclear. This situation may explain why Wuchang: Fallen Feathers ceased receiving updates in November 2025.

505 Games, the publisher of the original title and parent company of Digital Bros, has officially partnered with Siyuan and his new studio. In a statement from Digital Bros, Siyuan expressed a commitment to player feedback and original creative aspirations, aiming to deliver a more polished experience. The announcement from 505 Games on X included the phrase "Wuchang's story is far from over," which could be interpreted as a subtle nod to the recent studio changes.

An initial investment of 21.5 million euros (approximately $25 million) has been allocated for the new game, suggesting that a full release is still some time away. The financial backing indicates a significant commitment to the project's development.