The studio behind Hell Yeah! Wrath of the Dead Rabbit will no longer be making games.
Co-founder and creative director Aurelien Regard broke the news on his blog in French, which was translated by a Twitter follower into English.
Regard writes that the studio had no new projects, and to avoid taking uneccessary financial risks, has shut down production but will still exist as a company.
"Arkedo hasn’t closed down and is not bankrupt, going into administration or whatever big word, as it is managed properly," reads the post.
"It is interesting for the structure to still be here as after HellYeah!, we’ve made two small games which are finished but you’re not aware of them yet. We hope to release them soon and it should be fine on this side."
The issue was one of money - the middle-sized studio wasn't structured in such a way as to keep producing the small games the team wanted to make.
By taking action before the situation got desperate, Regard said his team was able to leave on good terms.
"So, it has been decided to disband the team when there still was enough money to get good conditions for everyone, rather than replace permanent positions with interns and a bad atmosphere," he wrote.
"As in any human matter, it is important to know when to stop, to get a clean situation. It is precisely because we did this at this time that everyone from Arkedo is still having a good time together, even after it's officially over."
Had the situation been different, the studio might have remained open, but a tough economy meant the studio didn't have much certainty to hang on to.
"Within a less hostile economical context, Arkedo would probably still be here, but this context just 'speed-uped' the end of the studio by a couple of years," said Regard.
"We hug/thank you very sincerely by finishing with this: Arkedo's members are fine, most haven't stopped the pixels and will show you new things with their own manners."