Castaway Entertainment, a studio established nearly five years ago by former Blizzard North devs, has become the latest casualty in an alarming trend among US game developers. Gamespot has reported that the studio has suspended operations, echoing similar death knells rung earlier this year Perpetual Entertainment, Iron Lore, and Stormfront Studios.

According to the report, Castaway has cut back its staff from nearly 25 people to just six critical staff members, and that all development activity has been shelved. Since Castaway was founded in 2003 the studio has produced only a single title, the XBLA pox Yaris, with other projects such as the unreleased Diablo-style game Djinn never having made it out of the ether.

This article was originally published on Joystiq.

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