Silicon Knights confirms layoffs, teases sequel - Report

Reports of staff cuts at Canadian studio Silicon Knights surfaced earlier this week, claiming that 75 percent of the studio's employees had been laid off, including the entirety of the studio's human resources department.

Silicon Knights today confirmed the layoffs in a Kotaku report, saying that the studio had dismissed 43 employees, just under half of its work force, after an unnamed publisher pulled out of an unnamed project.

Although the studio declined to name the publisher, it did confirm that it was not Activision, which last worked with Silicon Knights on this year's X-Men Destiny. According to the report, Silicon Knights is still working on the unnamed project and is currently in discussion with potential publishers.

Addressing the Canadian government grant received by the studio in July this year to help with attracting more jobs, Silicon Knights said that it is still on track to meet the performance targets outlined in the grant over the next five years.

The way the studio plans to do this is by returning to its roots and making "one of its most requested titles for the next generation." In May this year, Silicon Knights expressed interest in returning to the Too Human trilogy, despite the first game's lackluster critical and commercial reception.

Silicon Knights has released four games since 2000, including X-Men Destiny for the Xbox 360, 2008's Xbox 360-exclusive Too Human, 2004's remake Metal Gear Solid: The Twin Snakes, and 2002's Eternal Darkness: Sanity's Requiem.