A story on VentureBeat describes cuts at Foundation 9 Entertainment due to a downturn in the video game business. Foundation 9 is currently developing Assassins Creed II for PSP, Where the Wild Things Are, G.I. Joe, an unannounced Green Lantern game, and more. The story offers a quote from the company saying: "It’s important to F9 to remain a strong and profitable studio, so that we can continue to provide the best possible services to our publishing partners and employees. As such, we continuously monitor our production capacity and capabilities to make sure it’s in tune with the market. From time to time we make decisions to grow or shrink capacity in relation to market conditions, and we do not make public comments on these decisions. We can confirm that we recently merged the operations of our two Kirkland studios, Amaze and Griptonite. Having separate ‘console’ and ‘handheld’ studios under the same roof simply didn’t make sense in light of the convergence in capabilities of modern game hardware! J.C. Connors, studio head of Griptonite, will lead the combined studio. As part of that restructuring, and our normal practice of monitoring business conditions, we made the decision to close our Austin, TX handheld studio, Fizz Factor." Thanks Gamasutra.