Ignite laid off most of its 33 employees on Monday. Departing staffers were tendered severance pay and told their services were no longer needed.
One staffer who was let go said the company is in the midst of "restructuring" and "reexamining its future."
CEO David Hirschhorn said development, marketing, sales, and back office staff were affected in what he called a "sweeping overhaul." He added that the company "was a troubled company" when he was hired in March and he intends to "rebuild the company from the bottom up."
Ignite will still show three titles at E3: Halls of the Dead: Faery Tale Adventure II, the sequel to Faery Tale Adventure; Princess Maker 2, a simulation game based on Japanese anime; and MagZone, a real-time 3-D game with Mag-lev vehicles and original courses.
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