Silicon Knights, the Ontario studio that recently lost an costly five-year lawsuit with Epic Games, has confirmed a new round of redundancies at the studio.
Denis Dyack, who founded the Too Human studio some twenty years ago, told CVG that his company "had to lay off a small number of people".
Silicon Knights has in recent years dramatically scaled back on its employee count. In November it shed about 45 workers, leaving it with around forty staff.
Dyack has not disclosed Silicon Knights' current headcount, though he told CVG the team was "scaling back to a core group and focusing all our efforts on future opportunities".
Yesterday it was speculated that Nintendo was bankrolling Silicon Knights to develop a sequel to the Gamecube title Eternal Darkness for Wii U, and that the Tokyo company has since pulled out of the deal.
Without specifying which element of the rumour he was referring to, Dyack said "it is not true and has no basis in fact".
Silicon Knights must pay Epic Games $4.5 million following its long-fought legal war with the Unreal Engine developer. Dyack recently announced he was appealing the decision.