UK independent developer Monumental Games has shut its Manchester-based studio.
23 members of staff could be made redundant, but COO Paul Mayze said the company would retain talent where possible.
“We are looking to keep some staff, we are doing what we can, but there’s a lot of factors in play,” he told Develop.
He noted that the move was a “very difficult business decision”, adding that it “doesn’t fundamentally affect any of Monumental’s ongoing business”.
Mayze also said that the MotoGP and Football Superstars developer had lost a £140,000 grant awarded in December 2008 as it had failed to meet previously agreed targets regarding headcount growth.
In January, Monumental secured a £2 million investment from Maven Capital Partners, joint manager of the Capital for Enterprise fund.