13 Jun

While the amount of careers affected was not specified, Silicon Knights did confirm today that a “small number” of employees were recently laid off.¬† Founder and President Denis Dyack also squashed the rumor of a supposed Eternal Darkness sequel for the Wii U being cancelled by Nintendo.

“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.”

Said rumor had begun circulating on NeoGAF last week, alleging Nintendo canned the project following Silicon Knight’s recent legal troubles. The company had recently paid $4.45 million in a legal loss to Epic Games over the licensing of Unreal Engine 3, a decision which Dyack plans to appeal.

(via Game Informer)