Further woe for UK development as two more shut their doors

Unconfirmed reports suggest that two more UK development studios have shut their doors for the last time - with another Kaboom Group studio, Silicon Dreams, and London-based Asylum both allegedly going under.

gi.biz believes that Asylum Entertainment, which was based in North London, has laid off its entire team and gone into liquidation following the cancellation of a project which the company was working on for Lego.

Update: Asylum Entertainment has contacted us with a clarification of what's happening at the company - read the full story for details.

Meanwhile the trouble at Kaboom Group continues, with reports reaching us this morning that a second studio at the group has closed down. Earlier this week we reported that Attention to Detail - another developer which had been working on the Lego franchises - went into liquidation late last week.

It now seems that sister studio Silicon Dreams has also shut down. We had expected to see cutbacks at this studio, but if the reports that the studio has gone into liquidation are true, this will come as an unpleasant surprise to many.

There's no indication, however, that any of this trouble will affect the remaining Kaboom Group studio, Pivotal Games - whose latest title, The Great Escape, debuted at number eight in the UK sales charts this week. Pivotal is considered to be the most independent of Kaboom's studios, both in managerial and financial terms, as well as the most successful.

We'll bring you further updates on both of these stories as information becomes available; please bear in mind that no official confirmation for either of these reports has yet been forthcoming.