My condolences to the employees that are now laidoff and it's a damn shame that a company with potential had to wither away and die like this.
That said, what a bunch of dumbasses starting on an MMO project. They release one game and with barely any sort of fanbase they're already off and away with an MMO project, a genre that is completely saturated, has seen numerous failures/mediocre turnouts in the past year alone, and if the project ever went through I guarantee you it would just be a big, worthless flop. Bit off more than they can chew, methinks.
On top of that, if a game selling 1 million+ units in only a few months still results in the company completely and utterly falling apart, something is wrong with this industry and it needs to change now. One, developers/publishers need to stop making stupid decisions and two, they need to control this ridiculous budget fetish that this industry has, pumping everything with millions upon millions of dollars when it can be achieved on a lower, more efficient budget if they plan right.
I guess I'm just in a mix of disappointment, annoyance, and bewilderment. It's a bunch of ridiculous things wrapped into one; a brand new studio with a hugeass multimillion budget title that still doesn't sell enough and a studio tackling the MMO genre as if they have the resources to do so. Too often we have seen studios shut down due to this kind of crap. This needs to change.