UK-headquartered development conglomerate Kuju (Chime, Battalion Wars 2
) is set to close its Manila, Philippines office, just over one year after acquiring it thanks to what it called weak demand in that market.
ôKuju has conducted a strategic review of its Asian-Pacific operations and concluded that it will no longer maintain a full service studio in the Philippines," the company said in a statement to media outlets including UK trade site Develop
Kuju picked up the Manila studio with the acquisition of the Phillipines arm
of video game outsourcing services provider Matahari Studios in 2008, expanding its Asian presence.
Oddly, the Kuju Manila closure news today comes alongside unrelated confirmation to Gamasutra that Matahari's Indonesian offices are also closing, rendering Matahari Studios defunct. Its Indian parent company, LAI Games, continues to operate three other related subsidiaries, however.
Kuju says the Manila studio successfully supported its European operations, which are comprised of UK studios Headstrong, Doublesix and Zoe Mode. Kuju Manila also released Wii title Circus Games
to some succes.
Nonetheless, "Kuju has concluded that, given the weakness of demand in this part of the video games market, the prospects for further titles of this type are limited," concluded the company's statement.
The Manila office closure reduces Kuju's total offices to five. In addition to the three UK studios, it also has two studios overseas, including the Vatra studio in Czechoslovakia and Zoe Mode's San Francisco branch office.