Silicon Knights have scaled down operations and conducted layoffs of "a small number of people" in the wake of its $4.5 million loss to Epic Games' successful countersuit claims.
Head of company Dennis Dyack responded to the rumors circulating around the web that the studio was facing closure and that Nintendo had cancelled funding for Eternal Darkness 2.
"To the rumor about Nintendo, it is not true and has no basis in fact," Dyack said.
"We are scaling back to a core group and focusing all our efforts on future opportunities."
Silicon Knights have had a turbulent history with Epic Games, which began when they sued Epic in 2007 for unsatisfactory support of Epic's Unreal Engine 3, which they attempted to utilise for Too Human.
Silicon Knights were then forced it to build its own engine for Too Human, which had already suffered several delays over a period of eight years and experienced several development shifts, including jumping from a four-disc exclusive for the original Playstation in 1999, to the Nintendo Gamecube in 2000 before being finally acquired by Microsoft in 2005.
Unfortunately for the developer, the jury recently found in favor of Epic Games on all counts, including Epic's hefty counterclaims. Epic was awarded $4.5 million in damages and Silicon Knights has since said it will appeal the ruling.
Source: Games Industry
By Nathan Misa- Writer Bio