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The studio that came to the rescue of Yogventures backers is now undergoing major layoffs (update)

TUG developer Nerd Kingdom is undergoing major layoffs, resulting in delays to backer rewards of its sandbox game, it was announced in an update on the studio's official Kickstarter.

According to Nerd Kingdom, funding that would have lasted the developer until January was held back by an investor, leaving the studio to take more drastic measures.

"The deal that would have gone through would have lost us all control and ownership and we are not huge fans of being owned by investors like this," the company wrote. "Sadly, we need to cut off a few limbs to be able to ensure this does not happen."

The game was recently given to backers of the failed Yogventures Kickstarter in the wake of the collapse of Yogventures developer Winterkewl in July.

Multiplayer will still be added to the game next month, increasng the price of TUG from $10 to $20. In addition, the studio notes that a "few large publishers" are interested in the project; however, no decisions will be made without the support of backers first, says Nerd Kingdom.

Developed by a team of 25 people at Nerd Kingdom, TUG is an open-world sandbox survival game that's openly inspired by Minecraft, similar in style to the planned Yogventures. Check out our look at howTug succeeded on Kickstater where Yogventures didn't.

Update: Developer Peter Salinas clarified to Polygon: "The investor capital for us wasn't held back, we simply would not accept it since it meant losing control and freedom."

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