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Rumors of the impending shutdown were published earlier this week by Joystiq itself, and confirmed today via Twitter by (now-former) Joystiq employee Alexander Sliwinski.
Regrettably, all staff appear to have lost their jobs; developers in turn have lost a pair of websites that served as valuable outlets for press coverage and industry reporting.
Joystiq recently celebrated the ten-year anniversary of its launch, in 2004, as a spinoff of AOL's tech-focused blog Engadget. Going forward, Engadget is expected to take up some of Joystiq and Massively's responsibilities for game industry reporting.