I'm sure they will find good jobs elsewhere - unemployment here in Iceland is very low these days, but then again, there aren't that many game developers. For some, this will mean not only changing jobs, but moving to a different country, on a very short notice. While that can be exciting, it can also be very upsetting.
I mostly feel disappointed. I really believed this company had evolved past this sort of behavior. We've seen layoffs here before - it was painful, and we've really made an effort of avoiding getting ourselves into this situation. Or so I thought.
Shifting focus is sometimes - often, maybe - necessary. I just wish companies could do that without letting people go.