According to
Gamasutra
, Bay-area game developers StormFront Studios, the development team behind such games as the PlayStation 2 action title, Lord of the Rings: The Two Towers, Eragon, and most recently The Spiderwick Chronicles, is shutting its doors after nearly twenty years of being in business.
It is an unfortunate event when a company has to shut down and this closure will leave 33 employees of the studio out of work. The reasoning cited for the closure is nothing more than “adverse business conditions” but it seems a lack of signing deals may have played a part.