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Silicon Knights Suffers Layoffs

Silicon Knights said today it has laid off a small number of employees. The studio also denied a rumor it canceled development on the still-unconfirmed Eternal Darkness sequel for the Wii U.

"We are scaling back to a core group and focusing all our efforts on future opportunities," said Denis Dyack, founder and president of Silicon Knights in a statement. "As to the rumor about Nintendo, it is not true and has no basis in fact."

A rumor surfaced on NeoGAF last week that suggested Nintendo had pulled the plug on the heavily rumored Eternal Darkness 2 after Silicon Knights had to shell out $4.5 million plus additional legal fees to Epic Games from the recent lawsuit. Dyack said he plans to appeal the decision, however.

A representative was unable to comment on the number of employees that were affected from the layoffs.
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