"significant" layoffs at the Vancouver-based developer Radical Entertainment. The developer had most recently worked on Prototype and Prototype 2. The firings were due to lower-than-expected sales for the latter game.
According to an Activision spokeperson, "Radical is a very talented studio and has been a great partner to Activision. Although we made a substantial investment in the Prototype IP, it did not find a broad commercial audience. Following an exploration of a wide range of options, it was determined that closing Radical Entertainment as a creative entity was the only option."
The studio will not be shut down. Rather, the company will be stripped down to essential staff. "We met with the team and are currently exploring various options for the future of the studio including a potential sale of the business," the spokesperson explained. "Our preference would be to keep the team together, however, it is too early to say anything further at this time."
The developer reportedly had a staff of 90. Stay tuned.