With the reports breaking that a wave of redundancies hit across Obsidian Entertainment yesterday, a reason may be have been found: a cancelled next-gen title.
That's the rumour filed by Kotaku this morning who claim sources "familiar with the project" have informed it that a project entitled North Carolina was being developed for the next generation Xbox, and that was cancelled seven months into development.
Obsidian is currently working on South Park: The Game. Team members of which were also reportedly affected in the layoffs.