US-based studio Backbone Entertainment is facing imminent closure, according to a report.
Two sources from the company have told IGN that layoffs have been enacted at the developer, although closure isn’t yet a forgone conclusion, with the firm attempting to carry on as a smaller operation.
Based in Emeryville, California, Backbone Entertainment was formed in 2003 after a merger between Digital Eclipse Software and ImaginEngine.
The studio has gone on to work on a number of licensed games such as Rock Band 3 for Wii and DS, Death Jr. II: Root of Evil and Marvel vs. Capcom 2 for PSN and XBLA.
We have contacted the studio for further information.