California-based developer Red 5 has confirmed reports that it has laid off staff members but the studio says it’s still working on an unannounced MMO.
It was reported yesterday that Red 5 Studios laid off a significant proportion of its workforce, leaving the company with a “skeleton crew” unable to complete an unannounced MMO title. Today the company has confirmed the layoffs, but says work continues on the MMO.
“Red 5 Studios, Inc. is currently working on an unannounced massively multiplayer online game. Recently, the team formed around a new direction and took on additional investment from a strategic partner in the online games industry,” reads the statement.
“Red 5 remains committed to releasing a AAA quality, online title targeted for a worldwide release. The company has restructured the team in order to accomplish this goal. As part of the restructuring, some team members chose to part ways while others were let go. Red 5 has great respect for these departing team members and the contributions they have made.”
Red 5 was formed by ex-Blizzard staffers including chief creative officer Mark Kern, formerly team lead on World Of Warcraft, and vice president of creative design Bill Petras, previously art director on WOW.