Australian developer Fuzzyeyes has confirmed it has been forced to lay off the majority of its staff following financial difficulties brought on by the economic downturn and additional legal complications. However, a partial buyout could see some of those staff re-employed in the new year.
The Brisbane-based studio, which had been working on Edge of Twilight for PlayStation 3, Xbox 360 and PC, let go of the majority of its staff on September 30, CEO Wei-Yao Lu confirmed in a statement.
"In order to reduce the operating cost during this problematic time, Fuzzyeyes came to a difficult and unfortunate decision to reduce the number of staff to a minimum."
"On 5th of October, Fuzzyeyes has struck a deal to sell portion of shares to a third party company," he added.
"During this transition period, Fuzzyeyes will temporarily cease further development on any project. However, Fuzzyeyes is still in business and the office is still open.
"Until the transition is fully settled, Fuzzyeyes will suspend all onsite development, but all outsourced development is still ongoing.
"Fuzzyeyes will be back in full operation after the settlement, and a number of Fuzzyeyes ex-employees have been offered a position in early 2010."
SouthPeak is acting as publisher for Edge of Twilight. They have been contacted for comment on the situation.
UPDATE: SouthPeak has told GamesIndustry.biz there's no truth in rumours Edge of Twilight has been cancelled as a result of the problems at Fuzzyeyes.