Online Game Developer Red 5 Adds ‘Strategic’ Backer; Lays Off Staff

Red5

Red 5 Studios, the online game developer led by members of the team behind World of Warcraft, is going through a big reorg. The company — which had raised $18.5 million in a round from Benchmark Capital and Sierra Ventures three years ago — says it has taken on additional cash from an unnamed “strategic partner in the online games industry” and has also “formed around a new direction.” No details on how much additional cash the studio brought in.

The company also tells us that “as part of the restructuring, some team members chose to part ways while others were let go.” Gamasutra says 30 staffers may have been laid off. For its part, though, the company maintains that it is still “committed to releasing a AAA quality, online title targed for a worldwide release.”

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