Redundancies as Microsoft Cancels Two Projects at Vancouver Studio

Canada's games industry suffers another saddening blow this morning as Microsoft cancels two projects and issues lay-offs at its Vancouver studio.

Rumours early last night suggested that the entire studio, dedicated to Kinect development, was to be closed down. Microsoft clarified that it is only shutting down two projects, Microsoft Flight and unannounced Kinect shooter Project Columbia, and that the team affected by this is "small".

Small it may be, but it still means a redundancy measure for the studio. In Microsoft's own words, "as a result of this action, some positions within the development teams have been eliminated." Bit cold.

"Microsoft human resources is working with the affected individuals to find new roles within the company," the statement continues. "Microsoft Studios is invested in British Columbia and still has several teams, both in Vancouver and Victoria, which will continue to produce the best entertainment and gaming experiences possible."

Two ex-employees have confirmed on Twitter that redundancies are taking place.