A developer from Canadian independent United Front has denied rumours the studio will close.
The Vancouver studio’s major project, True Crime Hong Kong, has been cancelled at the request of IP owner Activision.
That announcement had been predicted by news site Eurogamer, but the website also reported that United Front was to close down.
Yet a source from the studio has told Develop the outfit will “remain in business”, though could not provide details on headcount fluctuations.
United Front has denied Develop the opportunity to speak with a press contact to clarify the matter further. The studio is thought to house over 150 workers.
Last night, during an Activision earnings call, the publisher announced it would cut around seven per cent of its global workforce, as well as close down its Guitar Hero business.
The cancellation of True Crime was also explained.
“To be blunt,” said Activision Publishing CEO Eric Hirschberg, “the game just wasn’t going to be good enough.”
In a prepared statement, United Front said it “understands” why it was not able to finish the True Crime project.
“Maybe we will have a chance to work together in the future, but in the meantime we are setting our creative sights on a different horizon,” the group added.