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Crytek Kinect game leading to layoffs?

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Crytek is to reduce the team at its Budapest studio, which has been working on an action game for Kinect, it has been claimed.

According to a Gamasutra report, Microsoft has asked Crytek to move development of its Kinect title Codename: Kingdoms from the developer's Budapest studio to its headquarters in Frankfurt.

Crytek is currently believed to be maintaining most of the Budapest staff working on the game in preparation for E3 2011, but is expected to lay off between 30 to 35 of the studio's 80 employees as a result of moving development to Frankfurt.

Codename: Kingdoms is a first-person melee combat game for Kinect. The game was first revealed briefly during Microsoft's E3 2010 press conference, though Kinect support was not mentioned at that time.

A source told Gamasutra that following the layoffs, Crytek's Budapest studio will focus on developing tablet games.

Crytek Budapest opened in 2007, and has been working on Codename: Kingdoms for two years.

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