[laserDinosaur]

"The studio closed down because it would need to sell way too many copies just to break even. Even "top" consoles are selling at unprofitable levels and trying to make it even with tons of DLC"

Not exactly. They broke even if not made a little profit on Kingdom of Amalur, not bad for a new IP from a new company. What killed them was they were building a massive MMO on the side that, accordiding to the Giant Bomb guys, never had enough money to finish and was funded from quarter to quarter based on new investments. A huge gamble. When the mayor came out saying they were a poor investment, their money dried up overnight and nobody would touch them. So, with a partially built MMO and bills needing to be paid they shut their doors. (source - ramblings from the Giant Bomb podcast and E3 interviews with David Jaffe)