Capcom to Shut Down Clover Studios in March 2007

The title says it all. In a press release issued yesterday, Capcom announced that Clover Studios, makers of Okami, God Hand, and the Viewtiful Joe series of games, will no longer be operational as of March of next year. In their statement, Capcom praises Clover Studios for achieving their goal of creating original and entertaining video games, but also states that it will serve Capcom better to use Clover Studio's funding and resources as part of the greater Capcom group and not as an independently-operating subsidiary. In a nutshell, Capcom loves Clover's games, but would rather absorb them back into Capcom and not have them spend so much money. It should be noted that the official dissolution of the development studio isn't official until March of next year, giving Clover time to still release any current unannounced projects that are under wraps.

Personally, this news saddens me. Viewtiful Joe and Okami are two of the most fun, original, and beautiful action games of this generation, and I have high hopes for God Hand. Hopefully, Capcom can still make good use of the enormous talent within Clover Studios after its disbanding, and we can see more great games in the tradition of Okami and Viewtiful Joe in the future.

Source: Capcom's Official Press release, found via digg.com