A source close to Capcom reported that Capcom laid off around 50 people in their Vancouver studio, in a restructuring that was meant to streamline the studio, but also cuts the scope of the next Dead Rising game. [Thanks, Kotaku]
The game reportedly is in a very early prototype state and has not been greenlighted yet, and is set in alternate New York. However, the game was supposedly already too large in scope.
Capcom later sent a statement on the matter, stating:
“Capcom Vancouver has undergone a restructure which has impacted approximately 30% of the studio, as part of its regular periodic assessment of upcoming projects and overall studio goals. The team is continuing to work hard to support the recent release of Puzzle Fighter for mobile and is dedicated to its flagship Dead Rising series.”