Silicon Knights cutting back after losing countersuit to Epic Games
Silicon Knights has laid off a "a small number of people" following its $4.5 million loss to Epic Games' countersuit claims.

Silicon Knights first sued Epic Games in 2007, claiming unsatisfactory support of Epic's Unreal Engine 3, which led to what Silicon Knights said forced it to build its own engine for Too Human. The jury found in favor of Epic Games on all counts, including its counterclaims, and awarded the engine developer $4.5 million in damages; Silicon Knights has since said it will appeal the ruling.

Silicon Knights head Denis Dyack told Games Industry the studio is still operational and is even planning for the future: "Silicon Knights has unfortunately had to lay off a small number of people. We are scaling back to a core group and focusing all our efforts on future opportunities."

This article was originally published on Joystiq.