Dungeons & Dragons Daggerdale developer Bedlam Games is, for all intents and purposes, shut down, an anonymous source close to the developer tells Joystiq. We were first alerted to the situation by a tweet from the (also anonymous) "veracious_shit," which said that Bedlam has "laid off most of its staff and effectively shuttered last month." Last year, veracious_shit earned his/her reputation in early 2010 with tweets about troubles at LA Noire developer Team Bondi.

Following these Bedlam tweets, we spoke to a source, who told us that around 90 percent of Bedlam employees are officially on "temporary layoffs," and have received no severance pay. Many of the staffers, we were told, have already found other jobs.

Daggerdale was the studio's only released game. The team, composed originally of former Rockstar Toronto employees, was also one of the studios that worked on the unreleased Scratch: The Ultimate DJ.

This article was originally published on Joystiq.