Rumor: Atomic Games at Death's Door?

We recently reported on layoffs at Atomic Games, which followed after Konami pulled out of its partnership with Atomic Games for Six Days in Fallujah. The company blamed its inability to secure full-scale funding for the project, which forced a reduction in size at the studio. 

Atomic did not comment on the number of affected employees, simply stating that development would continue with a smaller team funded by sister company Destineer, which purchased Atomic in 2005. However, IndustryGamers has heard from an anonymous source who claims, "Out of 75 people, less than a dozen are left and about a third of that isn't even developers.  The remaining team is basically a skeleton cleanup crew that will be gone soon too.  They are trying to downplay the extent of these layoffs, but the reality is that Atomic is pretty much dead."

We've put in an inquiry with Atomic Games to find out about the current state of their business but have not heard back yet. We'll be sure to update when we do.