Vancouver based Radical Entertainment has been hit with layoffs following the overall poor performance of their most recent two games: Prototype and Prototype 2. The Activision owned company will shed “approximately 89 employees” or, as the Activision PR spin-doctors would prefer to see it, “less than 1.5% of our [Activision’s] global workforce”.

According to Activision PR, the publisher “explored various options for the studio, including a potential sale of the business” but in the end decided that a “significant reduction in staff” was more feasible.

Prototype was Radical Entertainment’s baby; the entire IP was developed in-house and was the team’s first original franchise. The team had three other projects in the works throughout their time with Activision, but all three were cancelled by the publisher. The remaining staff at Radical will now move on to aid in “other existing Activision Publishing projects”, but insofar as Radical developing their own games goes, their time is over.

The PC release of Prototype 2 has NOT been affected by these cuts.

Sources: Joystiq & Rock, Paper, Shotgun