A report on Gamesindustry.biz says that Jeremy Heath-Smith told staff today that the company was closing although he and PR manager Suzie Hamilton have told the press that the reports are false.
The studio was opened in October 2003 - the brothers had previously co-founded Core Design, in 1988, which went on to produce Tomb Raider. The two left that studio following the release of the critically mauled Lara Croft Tomb Raider: Angel of Darkness.
Circle's first - and only - console games was PS2/Xbox actioner Without Warning for Capcom, released in October 2005. Since then the team had focused on interactive DVD titles.