Fuzzyeyes Studio â??at the brink of closureâ??

Australian developer Fuzzyeyes Studio has been shut down or had its workforce cut to a skeleton crew, rumours suggest.

The South Brisbane-based studio – founded in 2001 – is thought to have had as many as 50 employees before rumours of staff cuts surfaced.

News site Kotaku, citing anonymous sources, reports that the team’s current project, an RPG by the name of Edge of Twilight, may have been cancelled.

A representative for the studio could not be contacted at the time of going to press. Meanwhile, both the Edge of Twilight and Fuzzyeyes websites have been replaced by ‘coming soon’ holding pages.

Fuzzyeyes had recently made an “amicable negotiation” with Edge Games’ Tim Langdell over – of course – trademark disputes, though no details of the arrangement were made.

That game was announced in August 2008, and had been scheduled for release on PC, PlayStation 3, and Xbox 360 this year, reportedly to be published by SouthPeak Interactive.

Develop has contacted various parties on the matter.