I'll agree, ConkerTribe, that was an unfortunate remark, and the headlines of those articles are misleading (the Gamespy one was called "The End of Oddworld?"). If you just skim over it, it does look like they're through, but if you read the article it becomes clear that they aren't. I'll chalk up the remarks from the ex-employees to the fact that they're upset at being laid off; perhaps they meant Oddworld is over in the sense that it's dead to them. Lorne's probably left some bitter people in the wake of this.
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