Following rumors of mass layoffs, NCsoft Austin said it would be laying off more than 20 developers, Edge has learned.

"We are announcing that 21 positions are being eliminated in the Austin office of NCsoft in the area of product development," stated an NCsoft Austin rep.

"Primarily this is related to products which we have not previously announced and were in prototype phases.

"We are also cutting some positions on the Dungeon Runners team after deciding not to port the client to other platforms at this time."

South Korea-based NCsoft, publisher of Lineage, Tabula Rasa, Guild Wars and City of Heroes, reported today Q2 operating profits of $7.7 million, or a drop of 25 percent.

Sales were up 7 percent to $78.6 million.

Rumors arose earlier this week that layoffs would be much more widespread, with 150 people "on the chopping block" at NCsoft Austin.

The publisher called the rumor "pretty outrageous."

NCsoft will be launching the MMORPG Aion in Korea by year-end.