Radical Entertainment, the Activision owned studio behind Prototype, The Simpsons Hit & Run and Scarface: The World Is Yours, has been closed.
Update: In a statement made to Kotaku, Activision has clarified that Radical Entertainment will significantly reduce its staff count and assume a support role on other Activision projects. It will no longer develop its own games going forward.
"Although we made a substantial investment in the Prototype IP, it did not find a broad commercial audience. Radical is a very talented team of developers, however, we have explored various options for the studio, including a potential sale of the business, and have made a difficult conclusion through the consultation process that the only remaining option is a significant reduction in staff.
"As such, some employees will remain working for Radical Entertainment supporting other existing Activision Publishing projects, but the studio will cease development of its own games going forward."
Radical has also posted a message to its fans on its Facebook page and confirmed the PC version of Prototype 2 is on track for its July release.
"This morning Radical Entertainment went through a significant reduction in staff. We're very proud of what we achieved with the Prototype franchise, but unfortunately, the Blacklight virus didn't spread as far as it could. For PC gamers, rest assured that the PC version of PROTOTYPE 2 is still going to launch on July 24th as planned. And a special "thanks" to the PROTOTYPE Army and all our extremely loyal and passionate fans for supporting Radical Entertainment. We couldn't have come this far without you."
Original story: The news was revealed on Twitter by Rob Bridgett, who served as senior audio director at the Vancouver, Canada based studio.
"RIP Radical Entertainment 1991-2012," he posted.
Radical was founded in 1991 as an independent studio and developed titles for THQ and Microsoft before being acquired Vivendi Games in 2005 and later Activision Blizzard.
CVG sends its best wishes to all affected staff.