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It does suck to hear about a studio trying to find it's way, get shut down. It hard not to feel sympathy for the devs after reading this, but the gaming industry can be very cruel. I think the main issue was having a studio without any real track record build a game like this. I think if it was a well established studio who asked for the extra funds it may have happened, but when your taking a gamble off a studio without a real portfolio, it's hard to put a whole lot of faith.