The company also says it's open to divesting some of its studios, amidst reports of a potential Gearbox Entertainment sale.
The Tomb Raider developer confirms it has laid off ten employees as part of recent restructuring efforts by parent company Embracer Group.
With Gearbox put up for sale by parent company Embracer Group, the studio says going independent is another option currently under consideration.
Embracer Group acquired the Borderlands developer in 2021, in a deal worth $1.4 billion.
With Volition having been closed with immediate effect, we take a look back at the history behind the studio and what eventually led to its unfortunate demise.
Less than a year on from being shifted from Deep Silver's label to Gearbox, the studio has now been shuttered effective immediately.
The Embracer Group has revealed that it has plans to exploit the fact that it owns The Lord of the Rings and The Hobbit IPs.
Crystal Dynamics provides assurances that its parent company's restructuring program won't affect its ongoing projects.
Embracer Group says it intends to become "a leaner, stronger and a more focused, self-sufficient company" with its restructuring.
When asked about the state of the project following reports of development issues, Embracer Group CEO Lars Wingefors refused to comment on the situation.
The MMO is in early development at Amazon Games Orange County and features the stories of The Lord of the Rings and The Hobbit.
The three publishing labels will still continue to put out games for the next couple of years, however.
The Embracer Group confirms there will be five new The Lord of the Rings game releases between April 2023 and March 2024.
The company has SEK 8.2 billion invested in the development of AAA titles, and has over 30 of them currently in the pipeline.
Embracer Group CEO Lars Wingefors has previously said Saints Row is unlikely to be as great a return on investments as previously anticipated.
A report claims the Embracer Group has shifted the Tomb Raider franchise's rights out to Amazon, shortly after having acquired the series from Square Enix.
Crystal Dynamics in April last year that the next mainline Tomb Raider title had started development, and was being built on Unreal Engine 5.
The beleaguered multiplayer superhero action game is allegedly about to close up shop, with all future plans having reportedly been shelved.
A new report talks about Marvel's Avengers' many development issues, and claims there are currently no plans to release content for the game beyond next year.
The high-level endgame activity sees a team of four going up against a resurrected MODOK, and was first spoken of by Crystal Dynamics two years ago.