In the wake of Silicon Knights being slugged with a $4.45 million dollar bill after losing their suit against Epic Games
in May, the rumour is that the company is now being forced to lay off staff, after already having downsized from 150 employees in 2007 to a team of only 40 in 2012. And, to add insult to injury, Nintendo is now said to have cancelled Eternal Darkness 2
after realising they would need to stump up $10 million of their own money to keep Silicon Knights afloat. The studio is now said to "in limbo" - hopefully an official announcement will follow next week.
Source: NeoGAFRead full article by GON News