HVS layoff fallout – no Grinder?

So I have a friend who used to work at HVS up until the layoffs. I chatted with him a bit on IM. Here were some key things he said:

1. Due to layoffs, the majority of everyone remaining are now crunching on Conduit 2.

2. Its possible that Grinder may not happen. There is no publisher currently that wants to pick it up.

3. The layoffs occurred because their were no more new projects coming in. Meaning no publishers wanting to invest in HVS.