Layoffs Hit Backbone Entertainment

by Jim Reilly on Oct 09, 2012 at 02:43 PM

Backbone Entertainment confirmed it laid off employees from its studio today. James North-Hearn, CEO of parent company Foundation 9, says all current projects remain unaffected by this move.

Reports this morning suggested the studio may close entirely but that doesn't appear to be the case. Backbone currently helped develop Dance Central 3 and Midway Arcade Origins. Foundation 9 representatives were unable to comment on the number of employees let go at this time.

Below is North-Hearn's full statement sent to Game Informer:

I regret to announce a round of layoffs at Backbone Entertainment. The studio will continue to operate at a reduced size and will honor its commitments  to existing partners. Due to a lower demand for conventional console development, the studio has made some difficult but necessary adjustments in both its capacity and services, with the goal of matching the changing needs of today's market.

The dedicated development staff at Backbone has put together some of the studio's best work  for our partners in the upcoming fall releases, Dance Central 3 and Midway Arcade Origins. I would like to publicly thank the departing members for their incredible service to the company.

All of us at Foundation 9 are sorry to lose them and we’re here to help them to a soft landing.  We wish them well in their individual pursuits.