Kotaku reports that Sega has cancelled the Aliens role-playing game that was being worked on at Obsidian; it was announced back in 2006, but little has surfaced since. The site’s sources say that the cancellation has resulted in more than 20 employees being laid off. Similarly, Sega is also said to be “reviewing” Aliens: Colonial Marines, a shooter in the works at Gearbox, leaving its fate unclear.

Seemingly confirming Kotaku’s sources, Joystiq’s sources claim Sega has stopped funding both of the aforementioned games. Obsidian’s layoffs are also said to have affected the team working on Alpha Protocol, which is still expected out later this year.

All this comes days after Sega announced Aliens vs. Predator. It is set for release sometime next year.