Chicago-based F.E.A.R. 3 developer Day 1 Studios has laid off a huge swathe of staff following the collapse of a publishing deal with Konami, according to a Gamespot report.
Its source claims that around 95 per cent of one of its development teams have been given their marching orders, leaving one "significantly smaller" team on an unannounced project.
The axed team was reportedly working on a reboot of Konami's Silent Scope series, which has been dormant since 2002's Silent Scope 3.
No indication was given as to why the deal went sour and neither Konami nor Day 1 has issued a comment as yet.
Day 1's CV also includes the Mech Assault series and current gen third person shooter Fracture. Its last release, horror sequel F.E.A.R. 3, scored an 8/10 from Eurogamer back in June.