Red 5 Studios Confirms Layoffs

28 Jan 2010 at 10:59:57 by Tim McDonald

Red 5 Studios have confirmed reports that it has let staff go.

In a press release, the studio - initially formed by a group of ex-Blizzard employees - announced that "the team has formed around a new direction" and that the company "has restructured the team."

"As part of the restructuring," the release reads, "some team members chose to part ways while others were let go."

This new direction still involves "a AAA quality, online title targeted for a worldwide release," mind you, and these layoffs apparently come as a result of "additional investment from a strategic partner in the online games industry."

The rumours, as initially reported by Kotaku, were that the company had lost around half of its remaining staff members and that the company had been near closure an unnamed buyer bailed the company out. The other rumour is that Red 5's MMOFPS has been tabled, with the focus now shifting to a game "aimed at the Chinese market."

We suspect we'll be hearing more on this soon. Stay tuned.

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