UPDATE: Layoffs expected.

Creative Assembly staff were informed of Sega’s decision this morning.

We’ve contacted the publisher for more.

Three characters looking down at the camera. They are clad in extraordinary costumes. One has what looks like a virtual reality headset on and homemade baseball armour. One is a lady bearing her cleavage in what appears to be a sci-fi costume from the 70s. And one has a kind of spacesuit on and is holding a gun.

ORIGINAL STORY 10.45am UK:Sega has dramatically canned Hyenas, the upcoming space-set loot shooter from Creative Assembly.

The publisher demoed the game to press and public only last month atGamescom.

Today, Segaannouncedit had cancelled Hyenas in a financial update.

Cover image for YouTube video

“The resulting action will be to cancel Hyenas and some unannounced titles under development,” Sega wrote.

One of the heroes in the game was even a Sonic the Hedgehog cosplayer.

In early August,Sega top brass raised eyebrows by publicly branding Hyenas' development as “challenging”.

At the time, Creative Assembly was upbeat on the game’s chances, while acknowledging the risks involved.

“It’s a new IP, a new genre for us, that is challenging.