Following yesterday's news that Canadian studio Silicon Knights suffered massive layoffs, the company has affirmed that they're continuing work on their next project, even after a publisher pulled financial support at the last minute.
A spokesperson for the company told Kotaku that the loss of funding was a temporary setback, and development on the title would continue for the foreseeable future. "We are currently in discussions with other potential partners. The company is currently refocusing and returning to its roots, working on one of its most requested titles for the next generation."
That statement lends itself to two very different readings. If Silicon Knights is "returning to its roots", the unnanounced game might be a continuation of the Blood Omen franchise. Legacy of Kain was the developer's breakthrough title way back in 1996, and while later titles were handled by Crystal Dynamics, it's hands down the most commercially successful series that Silicon Knights can lay claim to creating.
VG 24/7 reports that Square Enix acquired the rights to Blood Omen when they purchased Eidos in 2009. That might bode well for Silicon Knights, as Square Enix has shown no qualms about giving up IPs they have no interest in developing.
If, however, you focus on the second half of that statement, you might reach a very different conclusion. Perhaps no title in Silicon Knights' history has the cult following of Eternal Darkness: Sanity's Requiem, and fans have been calling for a follow-up for years. The status of that franchise somewhat murkier, though, as Nintendo has maintained the rights to the property since the first game hit the GameCube back in 2001.