WildTangent has closed its internal development studio, WildTangent Game Studios, laying off around 20 of its staff in the process.
According to Gamasutra, the Redmond-based company's outspoken CEO and co-founder Alex St. John has also been replaced by Mike Peronto, formerly COO of the firm - but will stay on as chairman.
WildTangent will remain as a casual games publisher, which apparently constitutes the majority of its business.
Speaking to TechFlash, company spokesman Sean Sundwall said: "Game development has such a long-term return on investment. In an environment where resources are constrained, you have to look at the businesses that will give you the best return in the shortest period of time.
"It's become less incumbent on us to develop our own games to satisfy our customers' needs," he added.