London-based publisher Oxygen has decided to cease internal development efforts at its studio in the capital.
Oxygen Studios was established in 2007 and employed 14 people, primarily working on mainstream DS and Wii titles.
A source close to the development team told Develop that the news was broken to the employees just before Christmas. The studio is now up for sale.
Oxygen called its decision 'a move back to a more traditional publisher model using external development teams only.'
Intent Media has contacted Oxygen for further comment.