Following the cancellation of The Sims-style life sim Life by You, Paradox has now shut down its developer.

Swedish games company Paradox, best known for Crusader Kings, Cities Skylines, and Stellaris, said it had “decided to cease further operations” in Berkeley, California-based Tectonic in a move that affects the studio’s 24 staff.

“This is difficult and drastic news for our colleagues at Tectonic, who’ve worked hard on Life by You’s Early Access release,” Fredrik Wester, CEO of Paradox Interactive, said.

“Sadly, with cancellation of their sole project we have to take the tough decision to close down the studio. We are deeply grateful for their hard work in trying to take Paradox into a new genre.”

Tectonic had worked on Life by You since 2019. It’s the latest in a string of recent failures from Paradox, which Wester has said will spark an evaluation of how the company manages its projects. “We have a very solid financial position and a strong core game portfolio, which keeps us confident about our future,” Wester insisted.

This is difficult and drastic news for our colleagues at Tectonic.

Last year’s disastrous release of Cities Skylines 2, which developer Colossal Order is still working to address, was just one title that hit Paradox’s bottom line as well as its reputation. In October 2023, Paradox called The Lamplighters League a “big disappointment” as it was forced to record a $22 million write-down. Paradox has also delayed jail sim Prison Architect 2 a number of times, the latest to this September after the discovery of “unexpected issues occurring too often.” The Paradox-published Vampire: The Masquerade – Bloodlines 2 has endured a troubled development too, although a release date now looks in sight.

The closure of Tectonic is the latest in a string of studio closures and layoffs that have hit the video game industry hard in recent years. Thousands of staff have been impacted by cuts right across the industry, with layoffs at the likes of Microsoft, Sony, and Embracer, to name a few. Just this week Embracer shut down Pieces Interactive after Alone in the Dark failed to meet sales expectations.

Wesley is the UK News Editor for IGN. Find him on Twitter at @wyp100. You can reach Wesley at [email protected] or confidentially at [email protected].