After the past weeks lay-off's, Silicon Knights have been speaking to Kotaku in an attempt to clarify things, in doing so they make an interesting revelation:

Kotaku: http://kotaku.com/5855314/silicon-knights-cuts-half-of-staff-refocuses-on-one-of-its-most-requested-titles-for-the-next-generation

Last week Silicon Knights experienced layoffs due to extended contract negotiations falling through with a potential partner," the developer told Kotaku. "We are currently in discussions with other potential partners. The recent Ontario government funding is tied to future performance targets, spread out over the next 5 years, which we will meet."

Silicon Knights declined to say who the partner was, but said it wasn't Activision, who they worked with on their last game.Earlier this week, 1Up wrote that 75 people had been let go from the company. Silicon Knights tells Kotaku that they laid off 43 employees, or just under half of its work force.

Silicon Knights has received about $8 million in government funding. Some of that money was used to build the company's staff up to nearly 100 people. The developer says they are already refocusing their energy on returning to their roots.

"The company is currently refocusing and returning to its roots, working on one of its most requested titles for the next generation," the spokesperson said.

Silicon Knights, is perhaps best known for 2002's Eternal Darkness: Sanity's Requiem.

I wouldn't be surprised if this new partner is in fact Nintendo, and the game in question is a much sought after WiiU version of Eternal Darkness II. I think the game's been in development for a quite a while now, I recall hearing mumblings about a sequel at E3 two years ago. I also noticed Nintendo re-trademarked "Eternal Darkness" early last year:

http://www.siliconera.com/2010/02/16/new-trademark-prompts-thought-of-eternal-darkness-for-wii/

What do you think?

"Everyone hates us so we decided to do what worked last time."

It surely has to be Eternal Darkness II, judging by that quote.

If they can get it out for WiiU's launch it'd certainly be great, though it depends on how far it's in development. I wouldn't want a project like this rushed out.

Yea, I don't want this rushed out either, a game of this type needs a ton of testing to create all manner of emotions in players.

Here's hoping it uses the Vitality Sensor, whether it's now implemented into the WiiU controller or otherwise.

From that quote, it would be hilarious if it turned out to be anything other than Eternal Darkness.  Maybe they brought back Silicon Knights to handle the possible Legacy of Kain reboot?  Or maybe it's Metal Gear Solid 2: Triple Snakes.

@SpaceRunaway said:

From that quote, it would be hilarious if it turned out to be anything other than Eternal Darkness. Maybe they brought back Silicon Knights to handle the possible Legacy of Kain reboot? Or maybe it's Metal Gear Solid 2: Triple Snakes.

Well if this turns out well you can be sure Legacy of Kain will be next on the list.

Kojima Productions have WiiU dev kits and are working on something, whether it's a Metal Gear game joint project remains to be seen though:

“Obviously we did have talks with Nintendo early on – they approached us with the Wii U. We can’t say exactly when this happened or what kind of talks we’ve had but we were aware of the hardware and we’ve been looking at it.”

“We anticipated we would get questions about [Metal Gear Solid] today and unfortunately our answer is, we can’t answer that. We can’t say anything right now. Top secret.”

- Yoshikazu Matsuhana, Creative Producer at Kojima Productions