Update:

In a reply to IGN, SCEA confirmed that SuperBot Entertainment did make a cut to their staff:

SCEA can confirm that SuperBot Entertainment did make a reduction in their workforce today. The studio and SCEA remain committed to supporting PlayStation All-Stars Battle Royale post launch, including developing the title’s forthcoming DLC releases in the coming months. The first character pack (including Kat from Gravity Rush and Emmett Graves from Starhawk) will be available for download on February 12 and will be free for the first two weeks. We’ll be sharing news of additional upcoming content soon.

Given the recent events that have been hitting the industry as of late, and the recent launch of PlayStation All-Stars Battle Royale, it sadly comes as no surprise that news of layoffs have hit developer SuperBot Entertainment. Whether this news is standard restructuring as the company winds down off of production, or if this is another example our economic times and the sales of the game, that remains to be seen.

Either way, here is the announcement from Insomniac Games designer, Mike Birkhead:

Layoffs at Superbot. When it rains, it pours.

And when asked how many people were laid off:

Around 20, based on what I heard.

Even though both Insomniac and SuperBot are independent developers that have been developing exclusives for Sony, they are different companies altogether, so we will have to wait on an official word to see how valid this information is. But given the weak reception for PSASBR, and the number layoffs hitting the industry as of late, it’s not hard to believe.

Stay tuned to PlayStation LifeStyle as we keep you up to date on all the major happenings within the industry, and let us know in the comments if you think this was bound to happen, or if you think this is just downsizing as they wrap up production of All-Stars.