Sony Santa Monica, the team that is widely known for the God of War series, has been hit with quite a few layoffs. Apparently, more than 50 people have been let go, and the worst of all the news that was previously a rumor has been confirmed: their new open world sci-fi game has beeen cancelled.

It’s sad when we see a talented developer have a totally new IP cancelled before it’s even revealed to the public. The new title was described as an open world sc-fi experience, penned by the writer from Battlestar Galactica, directed by God of War III’s creative director Stig Asmussen, and it was four years in the making, only to be shown of at E3 this year.

One of the most notable of the layoffs was Jonathan Hawkins, who was the Lead Level Designer at Sony Santa Monica, and he also confirmed that the cancelled project was a brand new IP. He also confirmed that the cancelled project was indeed Stig Asmussen’s new project. None of the affected developers that have taken to twitter have confirmed if Stig himself was laid off as well.

Sony Santa Monica is a big studio, comprised of up to three teams currently – Stig Asmussen’s team, the God of War Ascension team, and Cory Barlog’s team. The latter two are rumored to be working on a new God of War game, and a totally new IP, respectively.

While this is definitely sad news, you better believe they’re still working on yet another God of War game, whether you like it or not. Between this and the closing and firing of lots of employees at Irrational Games, it really makes me wonder where the AAA development and model is going, or if it can even survive anymore in this day and age.

Surely we’ll see designs and documents for the cancelled project leak at some point, but what do you guys think? Is it acceptable that Sony cancelled their project, while yet another God of War game is in development?