Mindscape has confirmed to Develop it has closed down its internal development studio, Punchers Impact, and will no longer have a presence in the gaming sector.
The publisher states that 40 jobs at the company have been terminated, and after 30 years in the games industry it is moving on to building an interactive toy under the Karotz name.
According to a company spokesperson, Punchers Impact's U-Sing sold well at retail, but music license costs cut into the profits. The firm was hoping racing game Crasher on PC would be just as successful,
but it failed to do so.
“We had relied much on that game,” a company spokesperson told Develop. “It was not a success and was important to us that it was. We are no longer going to work in the game software business.”
Punchers Impact, formed in 2009, has a number of industry vets in the fold, including folks from Free Radical.