Online game provider WildTangent is the latest company to announce the closure of its internal development studio, cutting 20 percent of its staff in the process.
The privately-held casual games company has confirmed that 20 of its staff have been made redundant while the current CEO Alex St John has stepped down from his role.
"Game development has such a long-term return on investment. In an environment where resources are constrained, you have to look at the businesses that will give you the best return in the shortest period of time," says company spokesperson Sean Sundwall, adding that the remainder of its staff will continue to work on WildTangent’s online game network and advertising partnerships.
While the network currently provides around 1,000 games, less than 35 of those had been developed in-house. Sundwall also explained to TechFlash that the firm’s internal studio had only produced three games in the last two years.
"It’s become less incumbent on us to develop our own games to satisfy our customers’ needs," he said.