Having failed to find an appropriate publisher for its "finished, super polished" XBLA word game, Quarrel, developer Denki has announced layoffs of much of its staff. The "major restructuring" -- Develop claims the staff has shrunken from 25 to just 6 -- comes just one week after an exciting new trailer showed off the game's features. The studio hopes to abandon its "old business model" and gain better access to players directly, though it seems the game likely won't be heading to XBLA.

Denki's post posits that the game industry, in its reliance on low-risk projects, "doesn't value good games. Players do, but the games industry doesn't." It also notes that the game will still be released in some form "this year -- supposing we have to bring the board game version round each of your houses one-by-one." Keep your tea and biscuits at the ready! Oh, and also, if you're looking for developers, Denki would be happy to hear from you.

[Thanks, Steven.]

This article was originally published on Joystiq.