Earlier this week Kotaku reported that the upcoming third person action game Edge of Twilight had been canceled and that the game's developer Fuzzyeyes shut down. The story, which used anonymous sources, has now been refuted by a post on Destructoid, although it does sound like the game's had a rocky development history.

According to Destructoid's post, which similarly doesn't identify its sources, the game's development has been postponed. While Fuzzyeyes is not shut down, the story admits the developer has stopped development on the game and are outsourcing the work to other studios. The post claims Fuzzyeyes is supposed to start again sometime in mid-January 2010. Edge of Twilight was supposed to be published in the US by Southpeak Games but as we pointed out the game is no longer listed on Southpeak's web site.

Update: A message from Fuzzyeyes's CEO Wei-Yao Lu has now been released to the press. He admits it they laid off the majority of its staff last September but that it plans to be back "in full operation" early next year