Volition Games, the studio behind Saints Row and Red Faction, has been permanently shut down due to the "restructuring" policy adopted by parent company Embracer Group.

　　The announcement came via the company's LinkedIn. Here is what Volition Games had to say:

　　This past June, Embracer Group announced a restructuring program to strengthen Embracer and maintain its position as a leader in the video game industry.

　　As a part of that program, they evaluated strategic and operational goals and made the difficult decision to close Volition effective immediately.

　　-Volition Games

　　Under the restructuring process, layoffs and budget cuts were undoubtedly expected. However, the closure of Volition Games came as a shock, considering that they were deeply rooted in the industry. The driving force behind the restructuring decision comes after a $2 billion deal fell off between Embracer Group and Saudi-backed Savy Games Group. Following the deal's cancellation, Embracer saw its stock crash.

　　The first catalyst that resulted in the closure of Volition Games itself was the release of the latest Saints Row, which was unable to gain the traction it should have. The game launched badly last year, and Embracer Group's CEO Lars Wingefors revealed that the ROI (Return on Investment) wouldn't be that great. Embracer later shifted Volition from Deep Silver to Gearbox, hoping the new oversight would improve the studio's future games. Saints Row also received many post-launch updates and DLCs and recently launched on Steam. However, the aforementioned restructuring of Embracer was the final nail in the coffin.

　　It is unfortunate to see a 30-year-old gaming studio closing so abruptly. Despite the negativity behind Saints Row (and, previously, Agents of Mayhem), the studio was once capable of great games like the first Saints Row titles and the shooter Red Faction. Embracer Group is in a bad spot right now, and more studios may be affected by the restructuring policy after Volition Games.