A series of videos demonstrating Ignition Entertainment’s cancelled first-person shooter, Reich – which reportedly cost over $20 million to develop – have been leaked this morning.

Develop has reported that the project was canned after the recent demise of the publisher’s Florida studio – which left at least 70 people out of work. Some employees were given the opportunity to relocate to the company’s Texas studio.

A slew of reader comments appeared on Develop’s original story; several users claimed to have worked on the project. They posted video and concept art produced during the game’s development, later reported by the site.

Former senior programmer at Ignition, Matthew Farber – who left the company in April 2009 – said: “Force Unleashed had nothing on Reich. I worked on this very version of the game. Everything you see is completely dynamic. I may not have stayed [on the development of Reich] until the end, but I always hoped the game would make it to the end and eventually be released. My only regret is that it didn’t.”

The clips show a horror-themed first-person shooter, with an apparent emphasis on dynamic physics and environmental interaction.

A forum post on the website, Spong, said: “They have spent $23m on REICH and it is a flop. Of the 9 levels only levels 1 and 2 are completed. It would be difficult to outsource the rest of the game since the other stages are partially completed. Past management staff has mismanaged the funds. There was no corporate monitoring on spending.”

Claims that bad management was the root of the studio’s demise have yet to be confirmed.

Ignition said the studio’s closure is part of a reformed focus on digitally distributed titles.

“Ignition’s London office is very much up and running and will serve as the global headquarters for the company’s recently announced investment into digital distribution and publishing,” Ignition said in a statement to Develop.

The leaked videos can be watched below.