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Following yet another report of company restructuring resulting in job losses, outspoken industry veteran Denis Dyack called industry-wide layoffs within the last year and a half "staggering." However, the Silicon Knights boss does see a brighter future for development over the next five years, at least in the Canadian province of Ontario.

"Before, Ontario was a little isolated, there wasn't a lot of videogame companies here. But that's going to change. With all the positive steps that the government's done," Dyack told GamesIndustry.biz. Dyack's hopeful outlook for Ontario comes, in part, from Ubisoft's July announcement to open a new studio in Toronto -- a move Ubisoft hopes will bring 800 new jobs to the region over the next decade.

According to Dyack, new business in Ontario means the province will be able to combat recruiters who remove developer and designer graduates from the area. "It's really depressing going to [University of] Waterloo to recruit and we see that Microsoft was there before us and took all the best people. The tax payer paid for that education," he lamented. With development expanding in Ontario, Silicon Knights can finally start combing schools for talent to help produce the (Sweet Lord, make it happen) sequel to Eternal Darkness.

Publishers have been disappearing faster than Ludwig's snickerdoodles at Joystiq's Mid-Autumn Tea Social lately, both through bankruptcy or (for the lucky ones) being purchased. Designer and industry soothsayer Denis Dyack told Gaming Union he expects that to continue, comparing the shift to that of Hollywood which went from hundreds of individual studios to the six major houses we know today. Dyack expects the role of publishers to change as well, though he's less specific on exactly what that means.

Boy, one console and now fewer publishers? Sounds like Denis has been listening to too much They Might Be Giants.

"We have no intentions to stop making video games for the current consoles ... that would be nuts." That was Silicon Knights head Denis Dyack's response to our question about whether his musing about cloud technology had anything to do with a new direction for the company. During Dyack's "musing about clouds" presentation today at GDC Europe, the SK president mentioned a belief in systems like OnLive -- but he's not ready to take a walk in the clouds just yet.

The outspoken executive said that he doesn't believe people should be investing in game stores at the moment, though he was unsure how long the cloud model will take to gain a foothold. According to Dyack, cloud computing could become the dominant form of distribution and access for consumers within the next 20 years. In the meantime, Dyack told us Silicon Knights will keep doing console-based games "as long as the market is there."

When we first heard about Denis Dyack's vision of a single-console future, we were ready to dismiss the idea as, if you'll excuse our language, cockamamie. Now, in a world with cloud computing systems like OnLive and Gaikai in the works, it doesn't seem that nutty.

He's still banging the drum and elaborating on his point, saying that the single console would help reduce a glut of games overwhelming the consumer. "There were 300 or so games released last November. We're in a state of performance over supply. We're making more games than consumers can possibly consume," Dyack told Videogamer.com. "Marketing is having a disproportionate effect over the success of games because there's so many out there people are ignoring us."

Hey, you're a consumer, right? Are you feeling overwhelmed?

We'll spare the "too human" jokes and get right to it: Silicon Knights laid off 26 employees today as the studio reshuffled its size in preparation for "several new and exciting" projects. Before the "temporary" cutback, the company totaled just over 180 employees.

"These 26 individuals are hard-working and valued team members that we hope to bring back as we ramp up on our future projects," head knight Denis Dyack said in a statement. The layoffs are consistent with typical development cycles in the industry, but do come at a time when global markets are wavering. Silicon Knights has not yet named any of the individuals affected by today's downsizing, but a tipster suggests the group includes "a few long-tenured ones."

Read the full statement from Silicon Knights after the break.

[Thanks Bob!]

Tonight, from 7-9:00PM eastern, Mr. Denis Dyack and a handful of Silicon Knights developers will be logging onto Xbox Live to play some Too Human as part of Xbox.com's Game with Developers initiative. And, really, we couldn't think of any better way to spend a Friday night. Simply make the leap over to Xbox.com to get a listing of all the Silicon Knights Gamertags and spam their friends list like there's no tomorrow. Have fun and, please, play safe.

According to the NPD Group the controversial loot-grinder Too Human cracked the top ten sales chart for the month of August. Selling 168,200 units in a ten day period, Too Human landed the number 8 spot beating out Madden 09 for the Nintendo Wii and Guitar Hero: On Tour for the Nintendo DS.

While reactions have been mixed since Too Human's release, Silicon Knights president Denis Dyack told X3F in a post game release interview that the team from St. Catharine's, Canada, couldn't be happier with the final product. Controversy aside, Too Human debuted strong and continued sales only solidifies that the previously announced sequels are still in the works. That Valkyrie death animation can still fall in a well and die, though. Just saying.

[via GameDaily]

We turned on Too Human this morning (no, really) and found an auto update. Hoping it might have shortened the Valkyrie death sequence, we immediately unequipped all weapons and armor and ran naked (figuratively) into battle, only to be faced with the same 15.5-second consequence. We also thought the menu screen loaded faster, but that is all apparently just in our heads.

In a forum post this morning, Silicon Knights president Denis Dyack revealed that the update "fixed some connectivity issues and was done prior to release. It does not contain any balance or gameplay changes." Better luck next time.

Our greener, slightly more hi-def colleagues at X3F recently had a chance to sit down with Denis Dyack, famously outspoken founder and president of Silicon Knights. Although Dyack and Silicon Knights have been working with the others in recent years, the company does have a history of working alongside Nintendo, perhaps most notably when Ninty published cult favorite Eternal Darkness: Sanity's Requiem on the GameCube. Since it was released in 2002, the fan clamor for an Eternal Darkness follow-up has been considerable.

Regrettably, the signs given by Dyack here (at around the 4.30 mark) aren't encouraging. The sticking point seems to be the issue of who owns the Eternal Darkness IP, something which Dyack describes as "a complicated question with a complicated answer."

That said, he also reveals that Nintendo is a "silent partner" with the developer, and that the two companies have a "great" relationship. "It's not time to talk about Eternal Darkness 2," he concludes. The chances of an Eternal Darkness sequel on Wii seem a little slimmer after watching this, and that makes us sad pandas.

In the final part of our three part interview with Silicon Knights president Denis Dyack we discuss the future of the studio. From genre bending, clarifications and the unanswered question regarding the ownership of the Eternal Darkness IP, this interview covers everything you'd want to know about the future of Silicon Knights.

Stay tuned tomorrow for a special giveaway to round out our Too Human coverage.

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In the final part of X3F's interview series, Silicon Knights President Denis Dyack said that the question of who owns the Eternal Darkness IP is, "a complicated question with a complicated answer," while at the same time confirming that Nintendo is still a "silent partner" with the developer.

"That's a question we've never answered," he said. "At the end of the day, it's not time to even talk about those things for various different reasons. You know Nintendo, who's still our silent partner, a lot of people don't know that, we have a great relationship with those guys. It's not time to talk about Eternal Darkness 2." Dyack went on to say that, despite some reports to the contrary, SK has never announced ED2 to be in development.

Dyack also discussed his one console theory, and how the consolidation of the developers and publishers support his claim that the industry is moving towards a one-console future, adding that Silicon Knights is not opposed to being acquired by a publisher. He also said that the company's next game will be "very different" from Too Human, declining to elaborate further.

In the final part of our three-part interview with Silicon Knights president Denis Dyack one of the biggest questions lingering in our mind was the ownership debate regarding the Eternal Darkness IP. Some say Nintendo is the sole owner of the name, some say they were simply the publishers.

While Denis agreed that the question is one they have never answered in the past, he still kept silent on the answers. ""It's a complicated question with a complicated answer and we're not answering that question."

However Dyack surprised us by stating that Silicon Knights still has a "silent partner" in Nintendo when discussing Eternal Darkness but reiterates that nothing has ever been announced for a sequel to the famed horror title.

In the final part of our three-part interview with Silicon Knights president Denis Dyack we discussed the one console future, specifically the topic of consolidation. With companies such as Electronic Arts purchasing developers like BioWare and Pandemic and Microsoft purchasing Lionhead, does Denis Dyack see Silicon Knights joining a major company in the future?

"I think I see that for everybody," Dyack told X3F. "I think what is really important for us, more than anything else, is that we're allowed to create great games, grown in the way we want to grow [and] maintain our culture."

While Dyack isn't adverse to the possibility he did contend that any thought on the matter now is pure speculation on his part. "Who knows, it's like trying to predict what the weather is going to be like a week from now."

In the second part of our three part interview with Silicon Knights president Denis Dyack the conversation focuses in on Too Human. After listing off his three high points and low points from his experiences of the game, Denis discusses his overall impressions of fan response -- refraining to comment on videos from Kevin Pereira and Giant Bomb -- and whether or not the game has lived up to the studio's expectations.

Due to length this video split into two sections, the second portion of the Too Human interview can be found after the jump.

Stay tuned tomorrow for the final part of our three part Denis Dyack interview. In part three Denis and Xav discuss the future of Silicon Knights, the studios relationship with Nintendo and the genre possibilities for the development team.

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Continuing with their week-long series, nos amis at X3F talked with Silicon Knights President Denis Dyack over some of Too Human's biggest perceived faults. Part 1 of today's video interview is embedded above. Some highlights:

• On the community's early judgment: "People are trying to understand a game that's inherently interactive [by watching a video] ... All I can say is try the demo."
• On clipping and texture issues: "There's glitches in all games. It's really interesting to me because, as an example, there's gonna be things you can always improve. To me, framerate's not really that essential in cutscenes and it never has been for us ... I don't think Too Human's inconsistent from any of our previous games ... So there's clipping. Oh noes. Bottom line is, does it affect gameplay and by how much? Are there ways to improve Too Human? For sure, but the overall big picture? Happy, extremely happy."
• On the Valkyrie death scene: Dyack estimated it was a 15 and a 1/2 second scene. "If it's a sign that people love the game so much that they just want to get back in and play, could we make it skippable? Sure, it's an easy change. Is it something we ever would have anticipated since we thought it was faster than going to get your body or losing experience [which does not happen in Too Human] ... is that a change we can make in the future? Sure."
• On comparisons to Diablo: "There's this tactical element. People think, 'oh, this is like Diablo with a bit of action. In Diablo I can just go up to an enemy and pound him away [until it dies] and move on to the next one, if you had the better loot, you usually win. In Too Human, if you don't use your tactics, it is a new kind of genre-bender, you're gonna die. And we're looking at some of the feedback and a lot of people are dying. [laughs]"
• On future downloadable content: "I think that's gonna be unique to people who pre-order it, that's a one-time thing. But we've got tons of ideas that will far exceed the pre-order bonus."

Check out part two of the interview after the break.