1up is reporting that Silicon Knights, the team behind games such as Eternal Darkness and Too Human, has laid off a number of staff, shrinking from 97 to 25 in three short months.
Silicon Knights is yet to confirm the cuts but, according to 1up, two credible sources have come out in support of the rumours.
The cuts come in spite of grant funding from numerous including $4 million from the Canadian Federal Government and $3 million in funding from Ontario government.
In the context of mass layoffs and closures in Australia, Silicon Knights makes an interesting case study. Locally, most make the case for increased government funding for the video game industry but Silicon Knights -- based in Canada -- is a company that has received repeated funding and still seems to be struggling. Locally, the Australian games industry is suffering from its own set of issues, but it appears that as though this is a global issue in a number of ways.