Backbone Entertainment suffers round of layoffs due to "lower demand for conventional console development"; studio will continue to operate at reduced size.

The studio that developed Rock Band 3 for the Wii and DS has enacted a round of layoffs. Backbone Entertainment parent company Foundation 9 CEO James North-Hearn confirmed the news to GameSpot in a statement, saying a "lower demand" for traditional console games led to the layoffs.

Backbone has taken a hit.

’I regret to announce a round of layoffs at Backbone Entertainment. The studio will continue to operate at a reduced size and will honor its commitments to existing partners," he said. "Due to a lower demand for conventional console development, the studio has made some difficult but necessary adjustments in both its capacity and services, with the goal of matching the changing needs of today's market."

Backbone Entertainment also developed the DS version of Lego: Rock Band, as well as Marvel vs. Capcom 2 for Xbox Live, and Death Jr. Root of Evil for Wii. The studio was established in 1992 and is based in Emeryville, California.

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