Paladin Studios laying off 45 workers and shutting down

Dutch co-development studio Paladin Studios has closed its doors after 19 years.

The company shared the news on its website and explained it failed to launch enough work to cover its burn-rate over the past few months.

Paladin was established in 2005 and worked on a litany of console, PC, and mobile projects including Cut The Rope Remastered, My Tamagotchi Forever, Amazing Katamari Damacy, and Galaga Wars.

The closure means the 45 people currently employed at the studio will be laid off. "For almost 19 years, we have poured our hearts and souls into creating games that make you smile. Starting as a bootstrapped mini studio in 2005, we followed the twists and turns of the game industry and slowly but steadily found our place in it," wrote the studio.

"Over these years, the studio peaked at 55 people. As of this writing we were 45 people, each and every one of them a brilliant mind and kind heart, and together they truly created magic."

The studio claimed its titles have been played by million of people, but said it has "hit an inflection point for our financial security" and that pushing ahead with the current outlook would likely have resulted in insolvency.

"We have therefore taken this step to ensure a proper winding down, where all employees are given proper severance and the studio remains debt-free," it added. "Our existing games will stay alive, and we intend to keep providing (technical) support for them in the future."