Australian developer Fuzzyeyes has cut the majority of its workforce and suspended internal development in a bid to reduce operating costs as it restructures.
Confirming earlier reports, CEO Wei-Yao Lu said in a statement that affected staff members were let go on September 30 after the company ran into a number of challenges, including the “economic downturn and some legal complications”.
“On 5th of October, Fuzzyeyes struck a deal to sell portion of shares to a third party company... Fuzzyeyes is still in business and the office is still open. Until the transition is fully settled, Fuzzyeyes will suspend all onsite development, but all outsourced development is still ongoing.”
In a separate email, Wei-Yao Lu told us that “the business is not shutting down and will return to normal operation by second week of January 2010”. He also noted that a number of ex-Fuzzyeyes employees had been offered the chance to return to the company next month.
Additionally, he said that an external team is “still working hard” on action adventure title Edge Of Twilight for PS3, 360 and PC.
A spokesperson for the game’s publisher, SouthPeak, also told us: “The rumours aren’t true. Edge Of Twilight has not been cancelled.”