Capcom confirmed the news to us shortly after Kotaku first reported it. The Dead Rising studio was recently restructured to reduce from around 250 employees to 200. As has the scope of the Dead Rising 5.
The unannounced game was a third-person action-adventure set in an alternate reality version of NY. It would once again be a third-person action game.
The unannounced game, which was a very early prototype and had not yet been greenlit, was envisioned as a third-person action-adventure game set in an alternate reality version of NY, the source said.
The anonymous source, apparently familiar with the company and various social media posts, states that these significant layoffs are aimed at not only streamlining the company, but to also focus on tackling the next entry in the Dead Rising series.
Capcom has sent out a letter explaining that its Vancouver studio has been hit by a layoff.
The company was formerly known as Blue Castle Games, working on a number of Major League Baseball titles before collaborating with Capcom on Dead Rising 2.
The game got decent fanfare when it released for Xbox One in late 2016, followed by debuts on Steam/PC and PlayStation 4 (with Frank's Big Package), but it doesn't look like it met the sales numbers Capcom was expecting. The new Capcom Heroes mode is also a blast, and basically turns Dead Rising into a crossover musou title. While not all of the DLC is a home run, the tweaks to the main game are all a net positive.