Telltale Games has won critical acclaim for titles like The Walking Dead and The Wolf Among Us, but that was not enough to keep the lights on. An avalanche of former employees reports that Telltale is closing its doors in the near future after firing most of the workers. Telltale has not officially confirmed any changes so far, but it seems to be the end.
According to Gamasutra, Telltale has canceled all current projects except one: The Walking Dead Season 4. There is a small team of approximately 25 employees to finish the work in that game, and everyone else is being shown the door. It seems that once the project is finished, Telltale Games will cease to exist.
This does not come completely out of nowhere. Telltale fired about 25% of its staff last year because the gaming industry "changed tremendously in recent years," according to CEO Pete Hawley. With the rise of mobile games, it is possible that Telltale's game design style was not profitable enough. Purchases in the application were limited to content expansions instead of the consumable currency and the random loot. Those are cash cow stories not so much.