The news follows last week's announcement from Crystal Dynamic's publishing partner, Eidos, that the 1.5m global sales of Tomb Raider: Underworld had fallen 500,000 copies short of forecasts.
Crystal Dynamics (pictured) will now join a growing list of development houses - such as Midway, Electronic Arts, Free Radical and Factor 5 - which have recently resorted to staff cuts in difficult times.
Eidos claims the Crystal Dynamics layoffs are needed as the developer will now focus its efforts solely on Tomb Raider IP. The last title developed by Crystal Dynamics outside of the Tomb Raider franchise was some four years ago; with the 2005 Xbox, PC and PS2 title Project Snowblind.
Just days ago Eidos admitted it could be forced into talks with banks over its £25m credit line if its financial situation remains as it is. Shares in the company have taken a hit, dropping in one instance as far as 25%. Eidos' full-year revenue forecast has also been revised, down from £180-200m to £160-180m.
Article supplied by Edge-Online