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wraggster
March 15th, 2012, 23:03
Publishing contract for alleged Xbox 720 game 'fell through'

As many as 30 developers were made redundant at North Carolina studio Obsidian after Microsoft pulled funding for a next-generation Xbox project, an purported insider has claimed.
An anonymous source “familiar with the matter” said Obsidian’s directors had to cancel the mystery 'North Carolina' project after Microsoft decided against supporting the title, according to a Kotaku (http://kotaku.com/5893427/rumor-obsidians-cancelled-project-was-for-the-next-xbox-published-by-microsoft) report.

Yesterday it emerged that Obsidian had made as many as thirty staff redundant (http://www.develop-online.net/news/37557/Key-staff-claim-Obsidian-is-issuing-redundancies), apparently due to the project cancellation.
Obsidian and Microsoft were unavailable to comment when contacted by Develop. The claims remain unverified.
Historically Microsoft has splashed cash on external game development projects prior to announcing its latest console.

http://www.develop-online.net/news/40205/Microsoft-axed-next-gen-project-at-Obsidian