Following the public's cool reception of both The Movies and Black & White 2, it appears that Lionhead Studios is slimming down. Gamasutra is reporting that the Peter Molyneux founded studio is undergoing an organizational restructuring plan, resulting in the reduction of a number of Lionhead staffers, and the elimination of a third of its internal development teams.

But the good news is that support for The Movies shall continue and that current Lionhead staff are hard at work on "an amazing next generation title".

Report: Lionhead To Re-Organize, Lay Off Staff [Gamasutra]

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