DJ Hero dev FreeStyleGames in limbo, 'actively working with Activision on various options'

Despite reports of "severe layoffs" at DJ Hero development house FreeStyleGames yesterday, a statement issued by creative director Jamie Jackson, design director David Osbourn, and commercial director Chris Lee says that "no decisions have been taken at this stage" regarding the future of the studio. Furthermore, the trio noted, "We're actively working with Activision on various options going forward" -- it all sounds very reminiscent of Bizarre Creations' recent closing, frankly.

It certainly doesn't help that plans for future downloadable content in the DJ Hero and Guitar Hero franchises have been dissolved, not to mention Activision's statement during yesterday's financial call: "We simply cannot make these games profitably based on current economics and demand." Neither Activision nor FreeStyleGames have commented regarding yesterday's alleged layoffs.

This article was originally published on Joystiq.