After some good news about a massive Skullgirls update yesterday, some bad news followed today. Reverge Labs, the studio behind Skullgirls, laid off the entire development team.

Let that idea settle a minute.

We were shocked too. Especially considering how well Skullgirls was received (hell, we gave it an 8.5). But this story has a happy ending.

Autumn Games, the publisher and owner of the Skullgirls property, fully believes in the team: and so--like a phoenix from the ashes--the Skullgirls development team have reformed as Lab Zero Games, with a mission to bring the world more Skullgirls-related content.

Lab Zero Games has more good and bad news though. The good news: there will be more patches and merchandise on the way, as well as a few things they "can't quite announce yet." The bad news is that this entire legal process--which started when the team was fired in June--has delayed their ability to work on the PC version and "indefinitely delayed" the first DLC character.

Check out the full statement over at Lab Zero Games' new website, and stay tuned to DualShockers.com for more news.