Speaking to Gamasutra, a member of Blue Omega (the team behind Damnation), Geoff Rowland, has officially confirmed that a ‘majority’ of the team has been laid off, although a few members remain, which runs counter to his own Twitter post in late June which stated the ‘entire’ team had been let go.

Nevertheless, there remains the hope that the developer might be able to rehire those that were let go if their recently completed iPhone game, Attack of the Dust Bunnies, performs well in the market. Rowland said:

“I can’t really comment on anything due to existing [non-disclosure agreements]. The majority of the team was laid off shortly after submitting our first iPhone game (Attack of the Dust Bunnies) to Apple. It’s a really fun game with a sense of humor and I hope that it sells well.”

“I think the hope is if sales of the iPhone game go well, the team will get back together to develop smaller scoped games. While it is difficult to have been laid off in this economy, I think it is more difficult to no longer be working with the awesome team we had at [Blue Omega Entertainment].”]

Source: Gamasutra