Developer Krome Studios has closed its doors resulting in all staff losing their jobs, according to reports on IGN.
The closure was finalised last Friday, though there's a chance a small number of devs might stay on for a limited time to finish off existing work. The reason for the closure is said to be both the failure of existing IP and the inability to get projects focused on enw properties off the ground.
In late 2006 Krome acquired former Atari studio Melbourne House and was looking ahead to a bright future. However, in come April of this year things were looking bad for the company, with rumours of mass lay-offs.
The developer was thrust into the limelight when it was named the creator of Microsoft's retro arcade service Game Room.
Krome's biggest success to date was arguably last-gen platform title Ty the Tasmanian Tiger, though the studio was also behind the Wii version of Star Wars: The Force Unleashed and recent title Blade Kitten.