Backbone Entertainment, the developer behind titles such as Rock Band Unplugged and Marvel vs. Capcom 2 (PSN, XBLA) may be facing closure.

According to a report by IGN, the company has been laying off staff and discussions internally have given credence to the rumour that closure may be on the books. However, IGN’s sources have confirmed that the closure is not definite, and that the company may continue to exist in a smaller capacity.

Backbone has worked on a diverse range of games, including a large number of ports and remakes for portable devices. The development studio is currently working on Midway Arcade Origins, which is set to feature 30 classic games from Midway including Spy Hunter.

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