THQ has closed down Kaos Studios, the developer behind its recent Homefront FPS.
Zach Wilson, who was a level designer and writer at the New York-based studio, broke the news on his Twitter feed earlier today.
"That's what I'm hearing, that Kaos is shutting down, details to come. Most of the devs already have jobs with new studios anyways," read one post.
"It'll be interesting to see how THQ corporate spins this one," read a second, quickly followed by, "I hear the studio got a box of Saint's Row-branded dildos with a note that read 'Go f*** yourselves.'"
THQ has subsequently confirmed the news to Gamasutra.
"THQ continues its strategy of aligning the best industry talent with the company's marquee franchises," read a statement from the publisher.
"The Montreal studio will take over product development and overall creative management for the Homefront franchise. The Montreal studio actively collaborated with Kaos on Homefront."
Speaking to Eurogamer at E3 this week, THQ's core games boss Danny Bilson suggested that key members of the Homefront team would be relocated its Canadian studio.
"We said all along that Montreal will be an important home for that franchise in the future. The best talent from the game will always be invited and involved. I love that team. I worked really hard with that team and supported them. We'll still support the talent that built that game."
Kaos, who also developed 2008 shooter Frontlines: Fuel of War, started life back in 2006 rising from the ashes of Desert Combat team Trauma Studios.
Back in March, Bilson explained that the studio's future depended on how well Homefront performed.
"I tell them the more successful a game is, the better the economics are for the franchise, and that will help to influence what we do. So we haven't made any decisions at the moment. That's the truth. We're going to look at how it goes. We don't want to relocate people just to relocate people.
"A lot of it has to do with how successful it is and how strong that core team comes out on the other side. I love those guys. I've worked very closely with them on this game for years. There's nothing disrespectful going on at all. We're trying to do what's best for everyone."
Last time we checked, the game was doing rather well, despite middling reviews. THQ announced earlier this month that, to date, it has shipped 2.6 million copies of the game to retail.