"scaling back to a core group" moving forward.
In November the studio let 45 workers go dropping the head count to about 40. Dyack says the Nintendo rumours are "not true and has no basis in fact". Silicon owes Epic $4.5m.
The development studio lost their long fought legal joust with Epic Games over their Unreal Engine 3 tech, which has landed Silicon Knights with a hefty bill to pay.
Now the group is "scaling back to a core group and focusing all our efforts on future opportunities", said founder Dennis Dyack. It was reported that Nintendo were funding a project by the studio but decided to pull the plug over needing to inject a further $10m or so to keep it alive at Silicon Knights. Dyack dismisses this, but dismisses what exactly?
He said "it is not true and has no basis in fact" but doesn't specify what isn't true: that Nintendo has a project with the studio, or that they're pulling the plug? Silicon Knights is appealing the court's decision over their lawsuit.
The latest release from Silicon Knights was X-Men: Destiny for Xbox 360 and PS3.