Rumors of Edge of Twilight’s cancellation and Fuzzyeyes’ demise were on pretty much every video game site on the net recently. We here at GamingDead.com were pretty broken up about it, choosing not to cover the story in the hope that it was a cruel, groundless lie. If you think we overreacted, you likely haven’t read about this promising game, or watched its awesome trailers.

Well, we’ve got some good news, and we’ve got some bad news.

Let’s start with the good news; the game’s not dead! This isn’t the first challenge Edge of Twilight has faced. It’s a survivor.

Now, the bad news. I’ll let Fuzzyeyes’ Wei-Yao Lu deliver it.

As of the 30th of September, FUZZYEYES has let go the majority of staff as FUZZYEYES was

confronted with number of challenges, including economic downturn and some legal

complications. In order to reduce the operating cost during this problematic time,

FUZZYEYES came to a difficult and unfortunate decision to reduce the number of staff to

a minimum. As of the 5th of October, FUZZYEYES has struck a deal to sell portion of shares to a third party

company. During this transition period, FUZZYEYES will temporarily seize further

development on any project. However, FUZZYEYES is still in business and the office is

still open. Until the transition is fully settled, FUZZYEYES will suspend all onsite

development, but all out sourced development is still on going. FUZZYEYES will be back

in full operation after the settlement, and a number of FUZZYEYES ex-employees has

been offered a position in early 2010. Further details will be released once the transition

has fully completed.

Don’t you die on us, Edge of Twilight!