Backbone Entertainment is making layoffs with talk of a complete shut down, according to two sources at the company.
One of IGN's sources, however, says that a closure isn't yet a forgone conclusion, and that the company will attempt to "keep it going smaller".
Based in Emeryville, California, Backbone Entertainment was established in 2003 but came to prominence in 2005 with the release of Death Jr. on the PSP.
Recently the studio worked on LEGO Rock Band on the Nintendo DS and Marvel Vs Capcom 2 on XBLA.
Backbone was currently working on Midway Arcade Origins, a collection of 30 classic Midway classics including Gaunlet, Joust, and Spy Hunter. We've contacted Warner Bros. to check on the status of this project.
http://www.ign.com/articles/2012/10/09/death-jr-dev-faces-closure
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