Microsoft ‘axed next-gen Obsidian game’

As many as 30 developers were made redundant at North Carolina studio Obsidian after Microsoft pulled funding for a next-generation Xbox project, an purported insider has claimed.

An anonymous source “familiar with the matter” said Obsidian’s directors had to cancel the mystery ‘North Carolina’ project after Microsoft decided against supporting the title, according to a Kotaku report.

Yesterday it emerged that Obsidian had made as many as thirty staff redundant, apparently due to the project cancellation.

Obsidian and Microsoft were unavailable to comment when contacted by Develop. The claims remain unverified.

Historically Microsoft has splashed cash on external game development projects prior to announcing its latest console.

Develop understands it had paid Silicon Knights at least $30 million for the Too Human Xbox 360 project during one stage in the game’s protracted development phase.

The Kotaku source claimed that Obsidian CEO Feargus Urquhart had “choked up” when explaining the project cancellation during a studio meeting on Tuesday.

“While he normally projects loudly, the source said, he was chillingly quiet while informing staff that North Carolina had been cancelled.” Kotaku’s report read.

Obsidian is developing a South Park RPG for publisher THQ.