Backbone Entertainment, the Foundation 9-owned developer of many HD re-releases and retro collections including Sonic's Ultimate Genesis Collection - as well as the Death Jr. series - has suffered layoffs, Foundation 9 CEO James North-Hearn has told Gamasutra.

"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," North-Hearn said. "The dedicated development staff at Backbone has put together some of the studio's best work for our partners in the upcoming fall releases, Dance Central 3 and Midway Arcade Origins."

The scope of the layoffs was not revealed.