According to Gamasutra, Telltale Games, the development studio behind big franchise games such as Batman and The Walking Dead has made a substantial number of layoffs, cutting their staff of around 250 to just 25.
The news started circulating round social media, when former developers made announcements of their release from the company.
There's no details as to what this means for Telltale, however the signs do not look good. With such a reduced workforce, it seems unlikely that they will be able to continue any substantial development, so a possibility of shutting down or a significant shift in their business operations should be expected.
The remaining staff are said to be staying on to finish commitments for the remaining episodes of The Walking Dead: The Final Season, but all other development projects, including The Wolf Amongst Us, have been shelved.
This isn't the first time the company has shown signs of struggle, laying off 25% of it's workforce in November last year. This is the most significant however, basically leaving the studio with a skeleton staff.
The Walking Dead: The Final Season is due for release on September 25th, but two further episodes are planned for the series after that. Whether these will still be coming remains to be seen, but we may find out more after the 25th.
Stay tuned to GameFront for any further developments.
UPDATE: The official Telltale Games Twitter account posted an official confirmation that this is occurring, and that the 25 remaining staff members are "staying on to fulfill the company's obligations to its board and partners", stating that they experienced "insurmountable challenges" this year.
Meanwhile, Telltale Games co-founder and former CEO Kevin Bruner created a blog post on his personal website, who left the company a year and a half ago and is in the middle of a legal battle against them according to VentureBeat, stated that under his leadership, the company was able to avoid layoffs.