The game was revealed in January 2024 by Paradox Interactive, who acquired the title from Introversion Software in 2019.[4] The game was initially developed by Double Eleven, who took over the developing duty of the first installment after the acquisition.[5] However, a change in development studio was announced by Paradox Interactive on 13 May 2024, as Paradox Interactive and Double Eleven were unable to reach a commercial agreement.[6] Kokku, who had been working alongside Double Eleven since mid 2023, were to take over development of the title.[7]
Initially slated for release on 26 March 2024, the game was announced with a delay to 7 May 2024 in order to "fix more bugs and further optimize the game for all platforms".[8] It was then further delayed to 3 September 2024 as the team encountered "new technical challenges".[9] On 2 August 2024, the game was delayed indefinitely in the aim to improve the game's performance and quality.[10]
During the indefinite delay, the developers of the game continued to update with an MTB beta version being uploaded. The game has continued to receive updates without many announcements.[11]
On 14 January 2026, Paradox Interactive announced via its official Prison Architect Discord server that sign-ups had opened for a closed beta test beginning on 19 January 2026, with participation limited and requiring selected testers to sign a non-disclosure agreement.[12]
