Yeah. It just didn't sell enough to recoup the dev costs.

Serious answers please! I heard the development cycle may have been responsible for this. 

I thinks it's sad for all the developers that are getting laid off, and seemingly given zero credit for all the games "he" made. Couldn't he have simply left and started his own small team, and left his team, or his "coat tail riders" with a new leader? Seems terribly self centered and ego driven....

I for one have deep respect for the man. He made two of the best story-driven games of all time. And yes, way better than The Last of Us. Way better.

Bioshock Vita never went beyond pre-production. They haven't been slaving away at it for the past few years, they've just been mostly ignoring it.

If this is indeed legitimate, perhaps it was Levine's influence that closed the studio after all.

I am still convinced that it was shut down for financial reasons, but this is interesting.

AA always had indie spirit. With smaller budget they can do the games they love, not the games the most people will want.

Look at VanillaWare and NIS, they always had indie spirit.

Phil Fish disappeared, there's noone to insult AAA devs now =/

They didn't disband. They went indie.

So they get out of developing a game for the Vita by going Indie? Great logic.

Not sure who I like less now, Levine or Phil Fish

@brendude: with the original being 15 people now, and the majority making indie games, they might as well have disbanded.