State of Emergency 2 was released for PlayStation 2 early this year, but poor sales and higher than expected development costs have resulted in the closure of the developer's Scottish studio. Scotland's Sunday Herald reports that 29 staff have been made redundant, with DC Studios founder Mark Greenshields confirming the news to the paper.
"We had to pay a lot of money in order to complete the game," Greenshields told The Herald. "A lot of things were discovered after the acquisition. But when you buy something out of receivership, it's buyer beware."
The studio had been working on two unannounced titles, plus a PSP port of State of Emergency 2, but the future of these titles in unknown.
State of Emergency 2 seems to have been on a mission to destroy everything it touches. Not only has its latest developer been forced to close, but its original developer VIS Interactive and later Bam Entertainment have both filed for bankruptcy.