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Reports: Layoffs Hit Obsidian

by Jim Reilly on Mar 14, 2012 at 10:17 AM

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Reports surfaced this morning saying developer Obsidian suffered layoffs upwards of 30 people this week. In addition to staff reductions, the studio also canceled an unannounced next-gen title.

Joystiq and Game Banshee both reported layoffs between 20-30 employees. The only two projects to be affected by this is the recently revealed South Park RPG and a next-generation game called Project North Carolina, which has now reportedly been canceled.

Game Banshee says a tipster also noted that "the owners weren't paid for 6-7 months" and that "401k matching was halted" for employees.

When reached for comment, Obsidian CEO Feargus Urquhart told Game Informer, "We are always happy to talk about our announced projects, gaming and the industry as a whole. However, it is our policy to not comment on stories regarding our staff."

South Park was due later this year from THQ. No word yet if the game has suffered a delay due to the reported layoffs.

[Sources: Game Banshee, Joystiq]