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Why would they fire the team instead of just moving everyone to other projects? Aren’t the tales you hear about projects being canned and the whole team made redundant specifically due to not having the money to do the project or because some new bigwig is trying to cut costs?
Often times they’re the same thing. The money comes from the owner of the IP, who contracted out the project; owner of the IP decides they don’t want to do it anymore; no more money coming in to fund the people working on it.
I guess it depends on how big the company is, if they have a long-standing team and work on multiple projects or if they’re mainly contractors brought in for one big project. I’d hope a company like Supermassive have enough other projects going on that nobody’s losing their job over this.
I would hope, but it is becoming less and less common.