It looks like developer Radiant Worlds is in for a massive round of layoffs after publisher Smilegate Entertainment made the decision to stop development of SkySaga: Infinite Isles for an indeterminate amount of time. Radiant Worlds clarified that the failure to renew the contract with Smilegate causing the inevitable shutdown of production on SkySaga. "All positions at Radiant Worlds are now under threat and we expect to shortly enter a period of consultation with all staff."
SkySaga is the company's sole project and, without a funding source, it has no recourse other than to lay off employees.
However, studio founders are prepared support everyone involved as much as possible. According to a statement given, they are "in a financial position and [have] the ability to meet all statutory and contractural obligations to staff and suppliers".
Source: GamesIndustry.biz