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Eggnut Games has announced that it has shut down on social media.
In the announcement, the studio attributed the decision to complications in funding.
"We are unable to continue the development of our new game that we've been working on for the past two years," the studio said.
"We will use our remaining budget to give our team of 15 talented professionals some paid time to regroup, find new jobs, and hopefully continue creating."
Eggnut was established in 2017 and released narrative games Tails Noir: Prologue and Tails Noir.
The studio said that it will continue supporting its two released titles.
Read more on gamesindustry.biz