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Rumor: Red 5 Studios gets the axe [update]


Update: We just received a press release from Red 5 Studios announcing the "reorganization," stating the company has "great respect for these departing team members and the contributions they have made." The press release also confirms that Red 5 Studios has taken aid from a new investment partner and is "currently working on an unannounced massively multiplayer online game." So much for that ping-pong idea!

Original post:
Kotaku is reporting that Red 5 Studios, a studio comprised of some key ex-Blizzard personnel, is the latest to be handed its walking papers. A source claims that nothing but a "skeleton crew" remains at Red 5 Studios now, which at one point had offices in Irvine, CA and Shanghai. The latter recently shut its doors, though the relevant press release on Red 5 Studios' site has since been pulled. Apparently, the Irvine home base was also in danger of shutting its doors, but was bought out last week, spurring these layoffs.

The Kotaku tipster said Red 5 Studios was currently at work on a MMOFPS, a militaristic title built on an Offset Software-developed engine as part of an $18.5 million deal inked with Korean publisher Webzen. Obviously, that game is now on hold, and it's believed the "skeleton crew" that remains has shifted its focus toward working on a product for the Chinese market. Might we suggest a table tennis game? We hear that's all the rage over there.

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