Frontier's The Outsider sheds staff

A number of staff working on The Outsider, the oft-delayed action title from Kinectimals creator Frontier Developments, have been made redundant and the title's priority reduced, studio boss David Braben has announced.

According to Rock Paper Shotgun, 17 people have lost their jobs at the studio. However, Braben insists that the game, which was first announced back in 2005, has not been canceled.

"We have had to change priorities because of requirements on other unannounced projects," he explained. "Some people have been moved, and we are very sad to have made some people redundant."

He later clarified the situation to Develop, claiming, "There is still publisher interest in the project, and we haven't canceled it. The priority has been reduced, but we're still working on it."

Braben conceded that making redundancies was "a hateful thing to do" adding, "It's gutting, but one of those things you are forced to do sometimes."

When it was first announced, Frontier promised the finished game would offer "genuine freedom" inside a "gripping, high-tech thriller". The game's story saw you play as a fugitive CIA operative attempting to clear his name of a crime he didn't commit. Take a look at the trailer below for a better idea of what the studio was shooting for.

Although initially self-funded by the developer, it was reportedly later picked up by Codemasters. Rock Paper Shotgun claim that the deal fell through, as did a subsequent planned collaboration with EA.

In November, Braben told Eurogamer that the title was "still in full production".

Since the title was first unveiled, Frontier has released the two excellent LostWinds platformers on WiiWare and, most recently, Kinectimals for Xbox 360.