The Shoot maker Cohort Studios has shut down, Develop reports.
The Dundee developer blamed the closure on the "difficulties of being a console developer in a declining console marketplace".
"It really is with great saddness that we have been left with no alternative but to start winding down," CEO Lol Scragg said in a press release issued this afternoon.
"Making all 25 employees redundant is genuinely heartbreaking. It goes without saying that we wish them all every success, as they really are a very talented team and we are actively trying to seek employment for each and every one of them. As we entered 2011, we have looked to change the direction of our business but unfortunately we ran out of time."
PlayStation 3 exclusive The Shoot launched last year.
The PlayStation Move-enabled, on-rails blast 'em up saw players work their way through five different movie sets, shooting anything that moves.
Ellie awarded it 5/10 in Eurogamer's The Shoot review. "£29.99 is a lot to ask for a game that only offers a few hours of entertainment," she wrote.
Cohort, founded in 2006, worked on the Buzz! Junior franchise, Lemmings, and helped out with racers Burnout Paradise and Motorstorm.
PlayStation minis game Me Monster: Hear Me Roar, launches on the PlayStation Store in the first week of May.
"Who knows, if this game is a 'roaring' success – the doors of Cohort Studios may very well reopen as there is a Me Monstar 2 just bursting to get out!" said the studio.