Tecmo Koei says it plans to close its Canadian studio down at the end of March.
The studio was based in Toronto and opened in 2001 as a graphics workshop, but began making its own games in 2005.
Two years later, Fatal Intertia launched for Xbox 360.
“It was definitely an interesting experience at Tecmo Koei Canada,” former Tecmo Koei employee Harold Li told the Financial Post.
“We had a ton of talented people who put in their best efforts, and it’s unfortunate that things didn’t go as well as it could.”
The studio worked on a variety of platforms, shipping Samurai Cats and My Monster Mobile for mobile devices.
There is no word of the number of employees effected by the decision.