LEGO today sent out an email to media explaining that, despite relatively good reviews and 2 million players, the company has not been able to make enough money to sustain its MMOG, LEGO Universe.

The company also announced that, as a result, it will be letting 115 employees go.

From the press release it sounds as if the company is instead focusing efforts on other games. LEGO Universe launched Fall 2010 with a limited trial followed by a paid monthly subscription required to play. It recently switched to a freemium model, allowing anyone to play for free but with additional items and extended content costing real money.

Gameloft has come under fire by a former head studio programmer who worked for the company in New Zealand. The ex-Gameloft employee named Glenn Watson told games.on.net a story about how Gameloft teated its employees in New Zealand. Watson spoke about excruciating long hours, lies from upper management and violations of New Zealand law.

Financially troubled Midway Games has made sweeping cuts to its workforce. Midway laid off 25 percent of its workforce, or 180 people. Of that number, around 130 are from its Chicago studio and 45 are from its Austin studio which has been closed.

Midway has also suspended development of several games slated to release in 2010 and 2011. The move closes out an economically devastating year for the game maker which is in such bad shape it may be…