Failure to secure a round of funding ultimately led to the studio closing.
The story of Telltale Games’ closure is one that’s as abrupt as it is sad. Future projects like The Wolf Among Us: Season 2 have apparently been cancelled (though Stranger Things could live on). There’s some hope for The Walking Dead: The Final Season, but recent indications also peg that series as being finished.
Exactly what happened? According to Telltale co-founder Dan Connors, who spoke with Variety, the closure was due to the studio failing to secure a round of funding. “The company was working diligently to close a round of financing,” he said. “Unfortunately, when the last potential financial backer abruptly pulled out, we were left in a position where we had no choice but to stop production.
“Sadly, everyone was so focused on doing what was required to keep the company going that when the last potential partner backed out, there were no other options.”
Sources speaking to Variety stated that among Telltale’s financiers, it was Lionsgate that ultimately backed out. The entertainment company, known for its films especially, invested $40 million into the developer back in 2015. However, it apparently told Telltale’s board of directors that it would no longer finance the studio and instead work on its movie business.
None of this has been confirmed officially by Telltale or Lionsgate, so take it with some bit of salt. Still, with one of Variety’s sources apparently being an employee present when layoffs were announced, there could be plenty of credibility to the report.