Costume Quest 2 developer, Double Fine, has been hit by a round of layoffs that saw twelve staff members being let go following the cancellation of an unannounced project. According to Gamasutra, the San Francisco-based indie studio lost a deal for the project, which resulted in its cancellation. Founder Tim Schafer said in a statement:
One of our unannounced projects was unexpectedly cancelled by its publisher, forcing us to reduce our staff by 12 people. Our remaining projects — Broken Age, Massive Chalice, and Grim Fandango Remastered, were unaffected.
Double Fine previously said that it would also love to work on a sequel for Psychonauts. However, we haven’t heard much since then.
Our thoughts go out to all those who were affected.