Just Cause has been on ice since the release of Just Cause 4 on Xbox One, PS4 and PC. As it turns out, Just Cause 5 was in development for a number of years, but it had been cancelled before it could be announced publicly.
A former Just Cause 5 developer listed their work on the game on their LinkedIn profile. This was later publicised by MP1st, noting that the game had been in development at Sumo Digital between July 2021 and July 2023 before being cancelled.
The Just Cause games were primarily developed by Avalanche Studios and published by Square Enix, so it is unclear how Sumo Digital ended up involved with Just Cause 5. Perhaps there was a deal in place for Sumo Digital to co-develop and handle some publishing duties, like Embracer Group's current deal with Amazon Games for the next Tomb Raider title.
At any rate, the version of Just Cause 5 that was in development a few years ago will not be seeing the light of day. If the game does get made, a new set of developers will likely be starting the project over again from scratch.
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KitGuru Says: Much like Red Faction, I'm not sure there is much more you could do to improve on the theme park formula of the Just Cause games. An extended break, followed by a relaunch of the IP on next gen consoles might be the best way to go about bringing this series back.