Spearhead Games is ending production of Unforetold: Witchstone, which launched on January 4, and is laying off the majority of its staff.
In a statement shared on LinkedIn, the Montreal-based developer said production on the game will end indefinitely on March 8, as will its Discord server.
"The past few weeks have been challenging, as the combined impact of financial prospects that did not materialise have put us in a difficult position," it said.
"It further saddens us that due to these financial circumstances, we have had to make the tough decision to lay off the majority of our team. These developers created worlds unseen from nothing but with sheer will and collective imagination – a testament to the heart and soul poured into this studio. We want to express our heartfelt thanks to them for their passion and hard work."
The studio added: "We also want to assure you that we are doing everything in our power to support everyone effected. We have hired companies to help with personalised career coaching, emotional support, networking, and job placement assistance.
"As we move forward, we ask for your understanding and patience as we navigate through this transition period and find ways to rebuild again."
Spearhead Games was established in 2011 by former Ubisoft and EA developers, releasing titles such as Tiny Brains, Omesight, and Stories: The Path of Destinies.
Sign up for the GI Daily here to get the biggest news straight to your inbox
Read more on gamesindustry.biz