Silicon Knights hit by layoffs after costly lawsuit

Too Human developer Silicon Knights has been struck by layoffs after losing its lawsuit with Epic Games.

As reported by CVG, studio founder Denis Dyack said that it had to lay off “a small number of people”.

He added that the developer was scaling back “to a core group and focusing all our efforts on future opportunities”.

Dyack did not reveal however how many staff had been let go.

Last month Silicon Knights lost its protracted lawsuit with Epic Games after it had sought $58 million in damages over what it claimed were failures in Epic’s support for Unreal Engine 3, which it blamed for the failure of its Too Human release in 2007.

A North Carolina jury however found for Epic on all counts, and the judged awarded the Gears of War developer $4.5m in its countersuit against Silicon Knights after claims the studio had stolen ‘trade secrets’ with regards to UE3.

The latest layoffs at the Too Human developer also comes after it was reported to have let go around 45 employees in November last year, reducing the overall staff count to 40.