The studio had been working on a new original franchise in partnership with PlayStation.
Deviation Games has shut down less than three years after partnering with Sony to create a new PlayStation franchise.
The studio's HR chief and operations officer, Kriste Stull, broke the news on Linkedin (as spotted by IGN) and said the company will attempt to find its dev team new roles across the industry.
"It is with a heavy heart that we announce the closure of Deviation Games. I want to express my deepest gratitude to our entire team. Thank you for all your hard work, dedication, and contributions to Deviation; I'm incredibly grateful for the opportunity to have worked with each and every one of you," said Stull.
"To the entire video game industry, we will be hosting a networking event, and we would love for any/all companies/studios hiring to participate. Please reach out to me directly if you are interested in attending."
Deviation has been in trouble for some time. Last year, the studio laid off a number of employees and prior to that was rocked by the sudden departure of co-founder Jason Blundell.
Sources told VGC last year that around 90 people had been made redundant after Deviation "ran into a difficult situation." The studio had over 100 employees at launch, so those would have represented significant cuts.
Back in 2021, Deviation indicated it was working on something special with the backing of "incredible partner" Sony Interactive Entertainment (SIE). The PlayStation maker, however, is also dealing with turbulence of its own making after laying off 900 workers across its major internal studios, including Insomniac, Naughty Dog, and Guerrilla Games.
These are just the latest in a series of layoffs and studio closures that have decimated the game industry across 2023 and 2024, leaving developers scrambling for security as major companies look to cut costs in pursuit of sustainable growth, shareholder value, and other nebulous ideals.
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