Activision has shut down Radical Entertainment - the Vancouver-based studio behind the Prototype series.
As reported by GameInformer, the finger of blame was pointed at lackluster sales of the open world action franchise.
"Radical is a very talented studio and has been a great partner to Activision," said a spokesperson for the publisher.
"Although we made a substantial investment in the Prototype IP, it did not find a broad commercial audience.
"Following an exploration of a wide range of options, it was determined that closing Radical Entertainment as a creative entity was the only option."
Some staff have been absorbed into the wider Acti machine.
The company, which employed around 90 people, was purchased by Activision back in 2005. Its other credits include Scarface: The World is Yours, Crash of the Titans and The Simpsons: Hit & Run.
Its last release, Prototype 2, arrived in stores back in April to solid-if-unspectacular reviews, including a 7/10 from Eurogamer.