Today, San Francisco-based independent studio Double Fine (Broken Age, Costume Quest 2) laid off 12 staff after losing a deal for an unannounced project.

“One of our unannounced projects was unexpectedly cancelled by its publisher, forcing us to reduce our staff by 12 people. Our remaining projects — Broken Age, Massive Chalice, and Grim Fandango Remastered, were unaffected,” Double Fine founder Tim Schafer said in a statement provided to Gamasutra.

The company continues to work with external publishers (such as the embattled Majesco, which handled Costume Quest 2) as well as self-publish its games. The company has also branched out into offering publishing services and development assistance to indies with its Double Fine Presents program.