In a new statement on Twitter, the developer said it “made the difficult decision to shut down operations.” “We would like to express our sincere gratitude to our dedicated staff and partners in the educational institutions, administration offices, and the entire Montreal video game industry.”

Since it opened, the Montreal studio “led Cyberconnect2 on a creative journey in the development of tools and cutting-edge techniques used in creating games.” Despite this setback, it assures that the main studio “will continue to grow and move forward with the experiences we have gained in Montreal. Thank you for understanding, and we look forward to your continued support and guidance.”

CyberConnect2 has no shortage of releases in the coming months, with Fuga: Melodies of Steel 2 launching in May and Naruto x Boruto: Ultimate Ninja Storm Connections out later this year. Both games are in development for Xbox Series X/S, PS4, PS5, Xbox One, PC, and Nintendo Switch. Stay tuned for more updates in the meantime.

Perhaps the most prominent layoffs have been at Microsoft. It laid off 10,000 employees, with studios like 343 Industries, The Coalition and Bethesda Game Studios affected. Microsoft Gaming CEO Phil Spencer later said in an email that the layoffs would ensure “long-term success” and asked for employee support during “this challenging time.”

https://twitter.com/CC2MTL/status/1647955564956188675