In a surprising turn of events, game studio Possibility Space, founded by State of Decay producer Jeff Strain, has reportedly closed its doors. The closure is believed to be due to confidential leaks by its own employees, according to an email sent by Strain to the staff.

Possibility Space was established in October 2021 with the promise of creating a "joyful game" that had been Strain's dream for many years. However, beyond the initial announcement, no further details about the project were shared with the public. Now, several employees have taken to social media to announce that they, along with their colleagues, have been laid off.

While Strain has not yet commented publicly on the studio's closure, an email shared by Polygon senior reporter Nicole Carpenter sheds light on the situation. The email reveals that Strain blames the leaks on the closure of the studio. The leaked information pertained to Possibility Space's undisclosed project, known as "Project Vonnegut." It included internal business details, financial relationships, and confidential all-company meetings.

Strain expressed shock at the leaks, stating that such breaches are typically the result of outside hacking. The fact that internal team members, who were under a confidentiality agreement, were involved in the leaks was unexpected. After disclosing the breach to the studio's publishing partner, they expressed low confidence in investing further resources into completing the game, leading to the cancellation of Project Vonnegut.

"As a result of the cancellation and after careful consideration, I am closing Possibility Space. Today is your last day of employment," wrote Strain in the email.

Interestingly, this closure comes just weeks after another of Strain's studios, Crop Circle Games, also shut down. Prytania Media CEO Annie Delisi Strain previously stated that the closure of Crop Circle Games was part of a successful realignment of their games and staffing. However, with Possibility Space now joining the list of closed studios, the future of Prytania's remaining studios, Dawon Entertainment and Fang & Claw, remains uncertain.

The shutdown of Possibility Space adds to the growing list of job cuts and studio closures within the gaming industry. Over the past 18 months, it is estimated that more than 15,000 people have lost their jobs. Chris Dring of GamesIndustry.biz recently explored these layoffs, offering insights into the current landscape of the industry.

As the gaming industry faces challenges amidst a changing landscape, the closure of Possibility Space serves as a reminder of the uncertainty faced by developers and the impact of internal leaks on the fate of game studios.