Obsidian Entertainment has reportedly canceled "a future next gen project" while laying off over 20 employees associated with the game, which had yet to be announced.
GameBanshee notes that the game was internally referred to as Project North Carolina, and backed up the report with tweets and public posts made by Obsidian staffers.
Animator Andre Nguyen had this to say on his Twitter account:
Fellow Obsidianites who were laid off today…I was lucky, but I've been on the other end of that. Your talents will take you far! #keepgoin
Jason Fader, reportedly the producer of Project North Carolina, was also let go:
So long, Obsidian. It was a great 3.5 years. I'll miss everyone 🙁
Development on Obsidian's South Park RPG continues.