Rumour – Obsidian hit with lay-offs, “North Carolina” shelved

Wednesday, 14th March 2012 15:13 GMT By Staff

Obsidian is reportedly being hit with a round of lay-offs due to the cancellation of a “future next-gen project” and more lay-offs on the “existing South Park team” according to Joystiq.

Various LinkedIn profiles also note employees mentioning previous experience at the developer, two of which posted on the Obsidian forums state they were recently working on the South Park title.

A Joystiq tip states approximately 20-30 people “from all disciplines, including one person who started yesterday, as well as one who started last week” were affected. The same tip was provided to GameBanshee last night.

Kotaku‘s sources claim the cancelled project was codenamed North Carolina, and was to release for the next Xbox. Microsoft is said to have shelved the project, with Obsidian CEO Feargus Urquhart choking up while breaking the news to staff.

It’s not clear whether North Carolina has any relation to Obisidan’s rumoured Wheel of Time game, which was believed to be codenamed Virginia.

We’re waiting on confirmation of these reports. If the layoffs are genuine, it’s worth noting that the firm announced a round of lay-offs in April last year, so this may be an annual reformatting of the business or something else entirely.



  1. ManuOtaku

    I hope this is not a sign of a possible closure, i like the games done by this developer like alpha protocol, dungeon siege III, and Fallout las vegas,and now more so than ever, because iam waiting with great anticipation the south park game, therefore i do really hope this is only a reformatting and/or restructuring of their business, and not a possible escenario for a closure.

    #1 3 years ago
  2. Phoenixblight

    Ouch start just a day or week ago and already getting the cut. This does not bode well. I am surprised Obsidian have stayed afloat this long.

    #2 3 years ago
  3. Sini

    where do i insert moneys for another kickstarter isometric old school rpg

    #3 3 years ago
  4. Hunam

    Wow, getting fired after one day is pretty awful. I hope he hadn’t moved far for that job.

    #4 3 years ago
  5. The_Red

    Really worrying news :(
    South Park RPG looks and sounds really promising. Please don’t get cancelled. Please.

    #5 3 years ago
  6. Brenna Hillier

    Updated with some further rumours, plus a little info on Obsidian’s projects.

    #6 3 years ago
  7. Ercarret

    I’m not that worried about Obsidian’s future, but it’s a shame about the project. If I understood it correctly, it would have been an exclusive for the next Xbox? I think that would have been an interesting thing, both for Obsidian and Microsoft. With Gears of War being concluded and Fable more or less going down the drain, MS don’t have that many interesting exclusives left. You can’t live on only Halo. An Obsidian RPG would have been a welcome addition to the rooster. And it obviously seems like something the guys and gals at Obsidian cared a lot about. Yeah, a shame.

    I hope the South Park game pans out. I think it will, but it’s published by THQ and they seemed to be on the brink of going belly up earlier.

    I wish Obsidian the best of luck. They’re probably my favorite developer out there, since they are one of very few developers who actually cares about doing real RPGs nowadays.

    #7 3 years ago
  8. fearmonkey

    I would hate for Obsidian to close, and especially hate to see the Wheel of Time game or South Park die.
    I am really looking forward to South park!!

    I hope they take their time with whatever game the release, as they are known for buggy games, and unfortunately I can vouch for that rep. I wish I could say otherwise!!

    #8 3 years ago

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