Tne problem is they're going to have a rough time getting a new publisher if they develop another game based on the sales of their last project. Unless they propose a project that is more in line with what's commercially successful on the Wii.

Well just look at the games these dudes have done:

http://www.sproing.com/

Quite honestly I don't see huge hits there.

Ah, budget titles. Surely the reason why small software developers got into the game development business in the first place. lol

There seems to be some confusion. The publisher who published this game is not closing. One of the developers who worked on it is closing.

Developers:

Sproing Interactive Media
Deep Silver Vienna (this is the developer that is closing)
Rabcat
Immersive Games
Perspective Studios

Publisher:

Deep Silver (not closing)

Both Deep Silver and Deep Silver Vienna are owned by Koch Media. Deep Silver Vienna seemed to have a strange role as a developer. On both of their games, the other being Ride to Hell which is still unreleased, they are only one of five developers. It seems like there is a bit of outsourcing going on.

With all these other studios, that also makes my previous calculation wrong. This game likely lost even more money since more people were working on it. That's just not good when that is the only thing your studio has shipped since it was founded three years ago. I wonder how Ride to Hell is going to turn out.

Futureshop have this game but Bestbuy does not. I suspect there are more major retailers not carrying this title.

Also, zero promotion is bound for failure.

Probably they did something similar to some Indy movies in Europe, they spread the job between many companies (and even countries) to low the development cost, it's not like they're going to pay a full salary, probably they just paid for tasks or even this was part of people's contract.

Yes, but it's not as though this was one person outsourcing to lots of other people, it sounds like they had 20 people on full salary PLUS all the outsourced work, which while less costly than an additional full staff, was still probably a considerable additional cost beyond the 20 people on payroll.

the game was worked on by people from 12 different countries... I rememeber hearing this from an article in ign...

Madworld was a LOT worse than Cursed Mountain.

this is a real shame. Anyway, here in México is impossible find the game. Thats why the numbers sales, i think.