High Voltage Software, developer of Wii shooter The Conduit, has let 25 staff go, IGN reports.
High Voltage Software has said that it would still like to release zombie shooter The Grinder on Wii.
High Voltage has another Wii-exclusive in development, and this one hopes to achieve no-less than a gory Left 4 Dead extravaganza on the Nintendo console.
Due next autumn, The Grinder is a first-person shooter playable online by up-to four friends either co-operatively during the campaign or in multiplayer modes yet to be detailed.
"We've been playing a lot of Left 4 Dead and there really isn't that kind of frantic cooperative experience on the Wii right now. There's certainly nothing that takes advantage of the Wii hardware the way we are able to with our engine," Eric Nofsinger, chief creative officer at High Voltage, told IGN.