Reports suggest several redundancies have been made at Lift London, a Microsoft-owned studio.
The developer employs over 60 staff but an unannounced number are said to have been laid off as part of a merger with Microsoft’s Soho Productions, according to GamesIndustry.
Lift London was established as an incubator for smaller studios to share office space, with previous residents including Dlala Studios. It is headed up by former Rare developer Lee Shuneman and, while originally focused on titles for Microsoft’s Surface tablets, later expanded its remit – although few finished games have been seen from the studio.
Soho Productions, meanwhile, focuses on non-games media and TV projects, with reports suggesting the surviving Lift team could move away from games development.
Microsoft has refused to comment on the situation.