Edge of Twilight has been postponed but not canceled, according to Fuzzyeyes, but it does look as though the game is no longer in the hands of the developer which is dealing with layoffs at the moment but not a studio closure.
The game is currently being worked on by an outsourcing team until the studio can take over the project again.
Rumors yesterday stated that the game had been canned and that the studio was shutting down, which led Fuzzyeyes CEO Wei-Yao Lu to issue the following statement:
On September 30, Fuzzyeyes has let go the majority of staffs as Fuzzyeyes was confronted with number of challenges, including economic downturn and some legal complications. In order to reduce the operating cost during this problematic time,Fuzzyeyes came to a difficult and unfortunate decision to reduce the number of staffs to a minimum.
On October 5, Fuzzyeyes has struck a deal to sell portion of shares to a third party company. During this transition period, Fuzzyeyes will temporarily seize further development on any project. However, Fuzzyeyes is still in business and the office is still open. Until the transition is fully settled, Fuzzyeyes will suspend all on-site development, but all out sourced development is still on going. Fuzzyeyes will be back in full operation after the settlement, and a number of Fuzzyeyes ex-employees has been offered a position in early 2010. Further details will be released once the transition has fully completed.