Read Brash's official statement after the break.
Update: Variety reports Brash has also stopped paying its developers and is attempting to "return" or sell off many of its licensed properties. Currently in limbo: Tale of Desperaux, Prison Break, Night at the Museum 2, Clash of the Titans, 300, and an announced Superman game (allegedly to be developed by Factor 5).
"Citing the current tough economic landscape, Brash Entertainment has confirmed the company has instituted a strategic cost reduction plan that will see the elimination of over 20 positions across multiple departments. Affected by this move will also be the closing of some open positions that the company had planned to fill this fiscal year. Employees affected by this action will receive severance and extended benefits. Brash Entertainment will continue to strategically work on its business including the upcoming release of Six Flags Fun Park for the Wii scheduled for this December, and a video game based on the SAW movie franchise for release in 2009."