Update 2: Pitchford has reiterated to Shacknews that production on Aliens is still ongoing, though he did not go into further detail on the status of the project, only stating that to say it has "halted" is an "inaccurate characterization."

Update: Gearbox president Randy Pitchford has responded to the rumors in a comment post, saying that Aliens: Colonial Marines has not been cancelled.

"Aliens isn't canned," said Pitchford. "We've made some transformative changes and yes, that's meant some talent changes, but that's not the real story. The true relevance of the story will actually be irrelevant until we release our next game, at which time I hope there will be a lot of interest in what we've done that can produce such results."

Original story: Production on Gearbox Software's shooter Aliens: Colonial Marines (PC, 360, PS3), a four player co-op shooter based on the classic film franchise, has been halted, according to multiple sources.

Several sources have also told Shacknews that Gearbox today laid off between 15 and 25 employees, with one putting the number at 26. These sources independently claimed that the poor performance of Brothers in Arms: Hell's Highway and the stoppage of work on the Aliens title were contributing factors to the layoffs.

Though specific sales data on Hell's Highway is unavailable, the title debuted on the NPD group's weekly PC sales chart at ninth position, before quickly falling... Read more

Tucked away within the season finale of Jace Hall's studio-hopping web show was the first video of Gearbox's sci-fi shooter Aliens: Colonial Marines, which was penned by Battlestar Galactica writers and hits PC, PlayStation 3 and Xbox 360 next year.

The footage continues Hall's tradition of providing the first video of anticipated titles in brief off-screen snippets, as seen by the Duke Nukem Forever footage in the premiere.

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The first screenshots of Aliens: Colonial Marines--that weren't pulled from a fuzzy magazine--have been released by the developer Gearbox.

The shooter is set to sport four player co-op, recreating the tactical aspect of the marine squad from the classic sci-fi film sequel Aliens.

For more on the game, check out the first part of our E3 interview with Gearbox.

"This is no joke," said Gearbox president Randy Pitchford, and I had to agree. The more we hear about Aliens: Colonial Marines (PC, 360, PS3), the more exciting it sounds for fans of the original films.

Gearbox seems dedicated to staying faithful to the source material, and smartly expanding on it with a solid creative team. Four player co-op doesn't hurt, either.

Last week I had the chance to catch up with the Gearbox squad during a quick E3 lunch. During the interview, Pitchford explained the lengths that his company went to in order to make their game feel like an authentic piece of the Aliens franchise.

Randy Pitchford: One thing that's cool is some of the people we've been able to work with to help us [on Aliens]. The guys that write the Battlestar Galactica series, Bradley Thompson and David Weddle, they wrote our script. They're amazing guys. They gave us a lot, too. We could make a whole season of TV with the stuff they gave us. [laughs] We profited from the writer's strike, let's just put it that way. We talked with a lot of people, but those guys are so good.

And then a lot of the concept guys that helped make the movies. Like [Aliens concept artist] Syd Mead, that guy walks on water. And to be able to go to his studio, his house, and then have him draw a bunch of stuff. "Here's when I designed the Sulaco back when we made the first movie. Here's the original artwork. You want a copy, Brian?" And Brian's like, "Yes."... Read more

Publisher Sega today officially announced Aliens: Colonial Marines, the Gearbox Software-developed FPS title based on the popular movie series.

The squad-based shooter will support four-player cooperative play, and is set to hit stores within the year.

Featuring a story-driven single player campaign centering around a team of soldiers facing an alien assault, Aliens: Colonial Marines will attempt to recreate the look and feel of the original films while providing a tense FPS experience.

The game will also boast a four player co-op mode, with each player taking on a distinct role within the squad. Additional multiplayer modes will be announced at a later date.

Elements taken directly from the Aliens sequel will include pulse rifles, flamethrowers, and the Sulaco spaceship. A soundtrack described as "brooding" will also accompany the claustrophobic environments.

Weapons, skills, and equipment new to the Alien universe will also make an appearance, though none were specified.

Aliens: Colonial Marines will be released on PlayStation 3, Xbox 360, and PC in late 2008.

The sharp eyes at Gaming Target noticed that an Aliens teaser page on Sega.com revealed two companies involved with the new Aliens games mentioned this morning. The page, since updated, listed both Obsidian Entertainment and Gearbox Software in the copyright section. Obsidian most recently worked on Neverwinter Nights 2, while Gearbox is best known for the Brothers in Arms games. It's not much of a surprise seeing these two companies involved, as the official press release announcing the deal between Sega and 20th Century Fox mentions the development of a role playing game as well as a first person shooter. The press release also corrects this morning's Hollywood Reporter story in saying the first game will be released in 2009, not 2008.