Yesterday, Capcom sent out a press release indicating that they expected to suffer financial losses as a result of canceling development projects at their Vancouver branch. This, unfortunately, would turn out to be a sign of things to come. The Vancouver branch was Capcom's biggest footing in the West and the team behind the Dead Rising franchise, but soon it will be no more.

Shortly after the press release, Capcom confirmed in a statement to Kotaku that they've decided to shut the branch down altogether after previously laying off some employees to cut costs. As a result, 158 people will lose their jobs, and all in-development titles will be canceled. A small skeleton crew will remain in Vancouver to close things out before the studio officially dissolves next January.

Going forward, Capcom will focus its development efforts in Japan. What will become of Dead Rising is anyone's guess at this point, but whatever was in the works seems to have been scrapped. The 158 displaced employees will need to find jobs, as it doesn't seem at this time that many will be transferred to Capcom's other studios. According to Kotaku's sources, many employees had been leaving the studio for EA in recent months.

Source: Kotaku

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