Telltale Games CEO Pete Hawley:
It's been an incredible difficult year for Telltale as we worked to set the company on a new course. Unfortunately, we ran out of time trying to get there. We released some of our best content this year and received a tremendous amount of positive feedback, but ultimately, that did not translate to sales. With a heavy heart, we watch our friends leave today to spread our brand of storytelling across the games industry.

Full story @ Gamasutra.

While Telltale Games representatives have not yet responded to our request for comment and further details, word is spreading that the studio maintains only a skeleton crew (25 people out of what was estimated to be a staff size of ~250 people) to complete work on a single project.

The rest were let go this week, reportedly without any severance, and it sounds as though all of the company's other ongoing projects are in jeopardy or have been cancelled outright, including The Wolf Among Us 2.