Obsidian's ill-fated 'North Carolina' game was slated for the next Xbox and published by Microsoft, according to sources familiar with the project who spoke to Kotaku today.
Yesterday, after almost seven months of development, Microsoft cancelled the project, our sources said. Obsidian consequently had to let go of 30 people, as reported by several outlets this morning.
One source close to the project informed Kotaku that Obsidian CEO Feargus Urquhart choked up while addressing the company during a meeting yesterday afternoon. While he normally projects loudly, the source said, he was chillingly quiet while informing staff that North Carolina had been cancelled.