Gigantic developer Motiga has been shuttered according to reports from multiple employees.
Various Motiga staffers broke the news on social media, but studio CEO and co-founder Chris Chung confirmed the story with a candid statement, though he later admitted he might not have "all the facts."
"All of Motiga was acquired by Perfect World last year. Perfect World decided to announce the arrangement as partnership by the directions from corporate for the reason we were not privy to," he commented.
"Yes, [the closure] was the corporate decision. It was a budgetary decision at the highest level. Perfect World as a public company has a profitability goal and they decided to cut parts of the company that were not profitable.
"In short, Gigantic was not making enough revenue. Unfortunately, Motiga is not the only Perfect World studio being impacted by the decision."
Although it's not exactly clear what went on behind closed doors, it might not come as a huge surprise. Motiga has flirted with layoffs and cutbacks for the best part of two years, often making headlines for those exact reasons.
It meant Gigantic had a rocky road to release, and had to be rescued by Perfect World after funds ran dry. While the game finally launched earlier this year, it's now unclear what the future holds for the free-to-play MOBA.
Update: Gamasutra has received confirmation from Perfect World that significant layoffs have occurred at Motiga, reducing the staff to only a "core team of developers" to support Gigantic. Additionally, the publisher has revealed that it has closed Runic Games' Seattle office. The full statement can be found below:
“Following the news that Motiga has reduced the staff of its studio, Perfect World Entertainment can confirm that as the publisher of Gigantic, the game will continue to be available on our platforms. A core team of developers remains at Motiga, who will work with us to support the game and its players, including moving full steam ahead with the upcoming November update and future content. We cannot thank everyone enough for their contributions in making Gigantic the outstanding experience it is today.
Perfect World Entertainment recently closed the Seattle office of Runic Games as part of the company’s continued strategy to focus on online games as a service. We’re grateful to the team for all of their hard work bringing incredible experiences like Torchlight, Torchlight 2 and Hob to life. Runic Games will remain a part of Perfect World Entertainment’s portfolio of studios, and its games will continue to be available to players, as we stay committed to supporting and growing Runic Games’ beloved franchises.
The staff reduction at Motiga and the closure of Runic Games Seattle were unrelated. Perfect World Entertainment stands committed to delivering the best massively multiplayer online gameplay experiences to our players.”