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4/30/08

Studios bankrupted

Since January, a host of development studios have closed their doors, suspended operations, or otherwise stopped making games. Stormfront Studios, Perpetual Entertainment, Pseudo Interactive, Iron Lore Entertainment, and Castaway Entertainment have all hit the rocks in the last four months. Still-unconfirmed reports also have Activision's Foster City site, formerly Z-Axis, on the chopping block.

During that same period of time, the industry has racked up phenomenal sales. NPD's retail software-sales data for the US has been up by double-digit percentages for each of the first three months of the year, with growth of 47 percent and 63 percent in February and March, respectively. Meanwhile, Chart Track has reported its own record sales figures for the UK industry in the first quarter of the year.

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