Activision apparently considered an outright sale of the studio, as well as several other, unnamed options, but ended up deciding to lay off the majority of its employees. "Some employees will remain working for Radical Entertainment supporting other existing Activision Publishing projects," according to Activision, "but the studio will cease development of its own games going forward."
The decision was made following lackluster sales of both Prototype games. "Although we made a substantial investment in the Prototype IP, it did not find a broad commercial audience," the piece states. Radical Entertainment is based out of Vancouver, Canada and was formed in 1991.
Radical is most well-known for creating the Prototype franchise – its first original IP – though the studio worked on a variety of titles throughout its 32-year history, including the much loved The Incredible Hulk: Ultimate Destruction.