TimeGate's most recent efforts contributed to Aliens: Colonial Marines, which has been met with general disappointment by the gaming community.
TimeGate Studios has let go of approximately 25 of its staff according to Polygon.
The studio, which was partly responsible for development on the much anticipated and mostly disappointing Aliens: Colonial Marines, has made the job cuts as part of its preparations for the next console generation.
The layoffs were also made in the wake of a publishing deal falling through for the studio earlier this year.
'We had to make the difficult decision to let go of some great game developers. This is never easy, and we're doing all we can to assist those developers affected,'
said TimeGate president Adel Chaveleh in a statement. 'TimeGate is preparing, as is the entire industry, for the transition to next-generation consoles and new business models. As part of this reinvention, all projects and strategic initiatives continue to move forward at the studio.'
Aliens: Colonial Marines looks like it will be well remembered in gaming infamy as a massively hyped title that failed to deliver, along similar lines as Gearbox's other recent resurrection of Duke Nukem Forever.
According to Gearbox co-founder Randy Pitchford, TimeGate studios were responsible for the same amount of work on the title as Gearbox were. Reports that have trickled out following the launch of Colonial Marines suggest that the two studios did not work very well together on the project.
TimeGate's other work includes the F.E.A.R expansions and the Section 8 games.
Electronic Arts also recently made cuts in its studios in Los Angeles, Montreal and some of its smaller studios, citing the same reason of preparing for the next console generation for the job losses.