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Cancelled Obsidian project may have been an Xbox 720 game

Microsoft reportedly axed 'North Carolina' seven months into development

Obsidian's recently cancelled game was apparently in development for Xbox 720, or whatever Microsoft's next-gen console's set to be called.

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According to Kotaku sources "familiar with the project", the Fallout: New Vegas maker's ill-fated title was codenamed 'North Carolina' and had been due to be published by the platform holder.

Its cancellation is said to have led to 30 staff losing their jobs, with Obsidian CEO Feargus Urquhart choking up while delivering the news at a company meeting yesterday afternoon.

Reports have also claimed the Obsidian team working on the upcoming South Park RPG was affected by the cuts.

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Last month, Xbox World magazine claimed Microsoft will offer a Wii U-like touchscreen controller with its next console.

Other rumours have suggested the hardware will support Sony's Blu-ray format and may include measures to prevent second-hand games being played.

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