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Foundation 9 Confirms Layoffs at Backbone, Cites “a Lower Demand for Conventional Console Development”

Yesterday, reports indicating layoffs at Backbone Entertainment hit the web, and today, parent company Foundation 9 has confirmed their veracity.

Foundation 9 CEO James North-Hearn issued a statement to GameInformer regarding the status of Backbone, saying that while layoffs have hit the developer, they will remain open and continue work on their current projects.

I regret to announce a round of layoffs at Backbone Entertainment. The studio will continue to operate at a reduced size and will honor its commitments to existing partners. Due to a lower demand for conventional console development, the studio has made some difficult but necessary adjustments in both its capacity and services, with the goal of matching the changing needs of today’s market.

The dedicated development staff at Backbone has put together some of the studio’s best work for our partners in the upcoming fall releases, Dance Central 3 and Midway Arcade Origins. I would like to publicly thank the departing members for their incredible service to the company.

So it doesn’t sound like the studio will be shutting down just yet, but if the video game market continues down the path it’s headed, things may continue to get worse for smaller console developers.