Canadian studio Silicon Knights has been forced to cut its staff down to a "core group" that scaling back that will focus "all efforts on future opportunities," according to studio founder Denis Dyack. Dyack did not say how many employees were laid off.
The developer behind Too Human said that the layoffs are a direct result of losing its legal battle with Epic last month. The studio sued Epic for allegedly not supporting its Unreal Engine and for spending all of its time on developing Gears of War. The company was asking for $58 million in damages.
A North Carolina jury sided with Epic, and ultimately awarded the company $4.5 million related to its countersuit against Silicon Knights. Epic claimed that the studio had stolen trade secrets when it built its own engine for Too Human.