"It is with a heavy heart we announce today that GRIN has been forced to close its doors," wrote GRIN founders Bo and Ulf Andersson in a goodbye letter. "This as too many publishers have been delaying their payments, causing an unbearable cashflow situation." Once an exciting up-and-comer, GRIN grew rapidly in recent years, eventually expanding to three branches. The company released three games this year--Bionic Commando, Wanted: Weapons of Fate, and Terminator Salvation--which saw disappointing sales returns.

In the wake of the closure, a team of former GRIN developers have founded Outbreak Studios. The 25-strong studio will make its home in Gothenburg, Sweden, the location of the new-defunct Gothenburg branch of GRIN.

"Our mission is to develop titles for Xbox 360 (XBLA), PS3 (PlayStation Store), Games for Windows Live, PSP Go and iPhone," says Outbreak on its site. "We also deliver online components for AAA titles, both existing or upcoming."