Japanese publisher Square Enix has closed its Smileworks studio, which was based in Indonesia.
The mobile studio was only operational for 18 months, but failed to deliver the results its parent had hoped for, reports GamesIndustry.
A Notice of Business Closure on the studio’s website says the firm is "currently under the liquidation process". It’s not clear what has happened to the 23 people working there when Smileworks was founded.
A Square Enix Japan representative has said the publisher is changing its strategy for Indonesia. The company will now seek partnerships with local games businesses rather than establishing its own studios in the region.
UPDATE: Square Enix has issued a statement to Develop and clarified that 14 people were employed at Smileworks.
"The Square Enix Group aims to choose the optimum business set-up for any target market, after careful examination of the market environment, analyzing the competitive situation and identifying the necessary business functions needed for that target market," the statement reads.
"However it has proved difficult to achieve the expected results from the Square Enix Smileworks business and after re-evaluation, the company has decided to close down the Square Enix Smileworks business.
"The Square Enix Group still believes in Indonesia as a market which offers extensive opportunities. And going forwards we will focus on developing businesses in Indonesia and other south-eastern Asian countries through partnerships with local companies who are thoroughly versed in customers and business practice in each given market."