An unspecified number of jobs have been lost at Microsoft owned developer Rare.
Eurogamer reports that the move comes after sales of recent Xbox One release Kinect Sports Rivals, which was made at the Twycross studio, were lower than expected, resulting in a “significant loss” for the project.
It reports that around 16 jobs have been cut.
"At Xbox, our goal is to constantly create new fun, social and interactive entertainment experiences,” a Microsoft statement said.
“As part of Rare's commitment to this goal, we have made a decision to change our development process and methodology at Rare to best support our future projects, this has led to us reviewing the skills and the makeup of our development teams in our business. Rare continues to invest in our people and future projects."
This all comes just a week after Microsoft finally caved to pressure and announced an Xbox One SKU that will not include the Kinect camera.
Xbox boss Phil Spencer last week said that Microsoft and Rare were in the process of “evaluating what to do next” in the light of the move, which could likely have significant ramifications for a Kinect-focused studio like Rare.