n-Space, the video game studio responsible for creating some the smaller versions of the industry's biggest games, confirmed to Kotaku that it had laid off 25 per cent of its approximately 100 employees, citing a "momentary reduced demand".
The Orlando-based n-Space is probably best known for creating the Nintendo DS versions of games like Call of Duty: Modern Warfare, Call of Duty: Black Ops and GoldenEye 007. The company is also responsible for Wii variations of Marvel: Ultimate Alliance 2 and Tron Evolution, and the 2005 Gamecube game Geist.
This year was perhaps n-Space's most prolific. It has six titles on tap for 2010, including the already released Toy Story 3 for the DS. n-Space CEO told Kotaku that the cutbacks at the studio were partly the result of "wrapping up a bunch of titles simultaneously" and still unannounced projects being delayed.
"A lot of good people got caught up in bad timing," O'Leary tells Kotaku, "despite unbelievable results from my entire team. But we've got lots of great things ahead."