Vancouver-based Radical Entertainment is shutting down, Activision has announced.
The cause appears to be lacklustre sales of Prototype 2, which failed to break the one million mark worldwide.
"Although we made a substantial investment in the Prototype IP, it did not find a broad commercial audience," said Activision.
"Radical is a very talented team of developers, however, we have explored various options for the studio, including a potential sale of the business, and have made a difficult conclusion through the consultation process that the only remaining option is a significant reduction in staff. As such, some employees will remain working for Radical Entertainment supporting other existing Activision Publishing projects, but the studio will cease development of its own games going forward."
Radical Entertainment was formed in 1991. Acquired by Vivendi Universal Games in 2005, it notably developed Scarface: The World is Yours and The Incredible Hulk: Ultimate Destruction. In 2008, the studio became part of Activision, and under that publisher developed Prototype and Prototype 2.