A tough week in the North American video game industry just got tougher. Days after Capcom announced it would shut down its Vancouver studio, Telltale Games has announced that it too will shut down its San Rafael, California studio.
The company was best known for its episodic graphic adventure games like The Wolf Among Us, The Walking Dead, Batman: The Telltale Series, and Minecraft: Story Mode. It initiated a “majority studio closure” today after laying off around 250 employees, saying in an official statement:
Today Telltale Games made the difficult decision to begin a majority studio closure following a year marked by insurmountable challenges. A majority of the company’s employees were dismissed earlier this morning, with a small group of 25 employees staying on to fulfill the company’s obligations to its board and partners.
Various reports online have indicated that the laid off employees won’t receive any severance pay and will lose their health insurance within a couple weeks. (Capcom, by contrast, will be offering severance pay to its employees.) Affected employees have been sharing details on Twitter about their situation: