Last month, Austin-based Red Fly Studio celebrated the launch of the Wii version of Sega's Thor: God of Thunder. This week, the developer is marking a more somber milestone, as the company today confirmed it has laid off dozens of employees.
"Red Fly was in the unfortunate position of laying off around 30 people on Wednesday June 22," studio CEO Dan Borth told GameSpot. "The reduction of staff was a response to a large high-profile project that was, to our surprise, reevaluated and then canceled.
"Red Fly has been an agile, passionate company from day one, and while this news was very difficult, we've made a concentrated effort to reinvest in ourselves and the way we want to make games. Currently, we are all very excited about our new opportunities and working diligently to make them a reality."
Red Fly may be best known for 2008's original Mushroom Men games on the Wii and DS, but the studio has produced a string of licensed titles for the Wii since then. Its highest-profile games have been the Nintendo console versions of Ghostbusters: The Video Game, Star Wars: The Force Unleashed II, and Thor: God of Thunder, all of which received higher review scores from GameSpot than their Xbox 360 and PlayStation 3 counterparts.