Troubled developer Silicon Knights has confirmed additional layoffs following its loss against Epic Games. The X-Men Destiny developer sued Epic Games for troubles it faced working with the Unreal Engine during development of Too Human. Not only did Silicon Knights lose the case, Epic Games' countersuit will cost the company nearly $5 million in damages.

Although Silicon Knights has expressed intent on appealing the decision, it appears the company is continuing to downsize. "Silicon Knights has unfortunately had to lay off a small number of people," studio head Denis Dyack confirmed.

"We are scaling back to a core group and focusing all our efforts on future opportunities," Dyack told GI.biz.

Silicon Knights had laid off more than half of its staff late last year. Although the company had hoped the layoff would be "short term," the company's misfortunes are continuing to grow. With yet another layoff, can the remaining team continue to work on its purported next-generation game?