According to internet reports, around 75 percent of the staff of developer Silicon Knights has been canned. Reportedly, SK has shrunk from 97 to 25 employees. Ouch. Silicon Knights was founded in 1992, and developed Too Human for the 360, and more recently, X-Men Destiny.
The company is noteable also for working on a project funded at least partially by the Ontario Media Development Corporation (which offers Ontario-based developers a one-time offering that will provide Ontario video game developers). The untitled game was called "a psychological thriller played in the third-person perspective" and is being prototyped for "all major next-gen systems." It was planned for a 2010 release.
Whether it will ever see the light of day remains to be seen. As yet, Silicon Knights has offered no comment.