Update, 5:49 p.m. ET: Telltale Games has issued a statement to Ars Technica confirming that the game maker has begun taking steps to shut down completely. The full statement, below:
Today Telltale Games made the difficult decision to begin a majority studio closure following a year marked by insurmountable challenges. A majority of the company’s employees were dismissed earlier this morning, with a small group of 25 employees staying on to fulfill the company’s obligations to its board and partners. CEO Pete Hawley issued the following statement:
“It’s been an incredibly difficult year for Telltale as we worked to set the company on a new course. Unfortunately, we ran out of time trying to get there. We released some of our best content this year and received a tremendous amount of positive feedback, but ultimately, that did not translate to sales. With a heavy heart, we watch our friends leave today to spread our brand of storytelling across the games industry.”
Original report:
A wave of layoffs has apparently hit the video game studio Telltale Games, responsible for popular branching-narrative games based on the Walking Dead franchise. According to online reports, those affected by the layoffs have alleged that the studio is either shutting down entirely or staying afloat as a meager skeleton crew, ahead of The Walking Dead: The Telltale Series‘ final season launch throughout this fall.