A post on the Red 5 Studios Website confirms yesterday's rumors of layoffs at this studio formed in 2005 by veteran's from the World of Warcraft development team, adding they have recently received "additional investment from a strategic partner in the online games industry." Also, Kotaku has a bit of speculation about what Red 5 had been working on, saying one source tells them the developer had been building an MMOFPS using Offset Software's game engine (and and who knows what's happening with Project Offset), and this source tells them this has been put on hold following the buyout and layoffs. They add: "Red 5's development focus is said to have shifted to another project, one "aimed at the Chinese market'." Update: Meanwhile, Big Download has word from the studio that 35 employees remain, but they "plan to grow the team where necessary," and that studio co-founder William Petras was one of the departures, and confirming that Red 5 is using the Offset engine for whatever it is they are developing. Here's Red 5's statement:
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