Following yesterday's report that unsung steampunk action title Edge of Twilight had ceased development, we were unsure of the fate of the game's Australian developer, FuzzyEyes. That fate was revealed earlier today in a public statement from the company's CEO, Wei-Yao Lu, who explained, "On 30th of September, FuzzyEyes has let go the majority of staffs as FuzzyEyes was confronted with number of challenges, including economic downturn and some legal complications."

Lu confirmed that the studio is still in business, and is transitioning as it sells a "portion" of its shares to an unnamed third-party company. During this transition, the studio will "suspend all onsite development," while outsourced development will continue on. Lu claims the studio will be fully operational once more, after the transition, and that a number of employees will be offered their positions back in early 2010. The statement promises more details once the transition is finished -- at which point, we'll hopefully learn the true fate of Edge of Twilight.

This article was originally published on Joystiq.

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