Backbone Entertainment has confirmed the rumoured lay-offs at the studio.
Luckily the studio isn't closing as reports suggested yesterday, and work will continue on Dance Central 3 as well as Midway Arcade Origins.
"I regret to announce a round of layoffs at Backbone Entertainment. The studio will continue to operate at a reduced size and will honor its commitments to existing partners. Due to a lower demand for conventional console development, the studio has made some difficult but necessary adjustments in both its capacity and services, with the goal of matching the changing needs of today's market," said James North-Hearn, CEO of Foundation 9, to Game Informer.
"The dedicated development staff at Backbone has put together some of the studio's best work for our partners in the upcoming fall releases, Dance Central 3 and Midway Arcade Origins. I would like to publicly thank the departing members for their incredible service to the company.
"All of us at Foundation 9 are sorry to lose them and we’re here to help them to a soft landing. We wish them well in their individual pursuits."