Telltale Games, the studio responsible for narrative-driven games The Walking Dead, Wolf Among Us and Batman: The Enemy Within, dismissed all but 25 employees last week after a year of “insurmountable challenges”.
A statement issued on Telltale Games’ social media on Friday revealed that it will begin the process of a majority closure of its studio.
CEO Pete Hawley said that a “tremendous amount of positive feedback” over the past 12 months did not translate to sales.
In November 2017, the company laid off around 90 of its developers prompting accusations of toxic management and overworking employees, according to The Verge.
Telltale started as a small studio of only a hundred or so people that had modest success with games such as Sam and Max Save the World and Poker Night at the Inventory.
The studio hit massive mainstream success with Season 1 of The Walking Dead, but along with success came changes with some of the core creative team leaving.
The skeleton crew of 25 is being retained by Telltale Games to fulfil its obligations to its board and partners, according to the press release.
Mr Hawley said: “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.”
The company has not confirmed if it will release The Walking Dead‘s final season.