Radical Entertainment, a local console game developer, will stop developing its own games, the studio's parent company confirmed in the wake of layoffs Thursday.
Tweeted obits began fuelling rumours Thursday that the Vancouver console game maker, which is owned by Activision Blizzard, would be closed.
Rob Bridgett, Radical Entertainment senior audio director, posted, "RIP Radical Entertainment 1991-2012." The company's own Facebook page confirmed large layoffs.
"Yes, there's some unfortunate news to share today. This morning Radical Entertainment went through a significant reduction in staff."
The post went on to assure gamers that the new Prototype 2 is still scheduled to launch on July 24. It's just not clear what the Vancouver studio's future will be.
In a statement issued by Activision, the company said Radical entertainment's Prototype franchise did not reach a broad enough audience.
The company considered selling the studio, but appears to have opted to keep it open with a dramatically reduced staff.
Howard Donaldson, president of DigiBC, said Radical's Protoype franchise simply failed to gain the traction needed in today's video game marketplace.
"The console market has become very, very competitive. You either have to have a top game or it's really tough to compete. Really only a handful of top games are competitive."
Donaldson added that, while Activision is reducing staff locally on the game development side, its online gaming support business is growing.
Activision owns DemonWare, which has a Vancouver office that is in hiring mode. DemonWare specializes in software for multiplayer online play.
It's not clear what Activision now plans for the studio, although the company said it would no longer be developing its own games.
"Radical is a very talented team of developers; however, we have explored various options for the studio, including a potential sale of the business, and have made a difficult conclusion through the consultation process that the only remaining option is a significant reduction in staff," the company statement said.
"As such, some employees will remain working for Radical Entertainment supporting other existing Activision Publishing projects, but the studio will cease development of its own games."
In 2011, Radical employed 140 people, according to Business in Vancouver's 2011 Book of Lists.
