Defiant Development, the Australian studio behind Hand of Fate 2, is effectively shutting down after nine years. 

Writing on Facebook, the company explained it has struggled to keep up with the changing shape of the games industry, and suggested its "risky" approach to development had finally caught up with it. 

Although the studio will continue to support its current roster of titles in caretaker mode, it has ceased development on all new projects, such as the work-in-progress A World in My Attic, and its staff are looking for new positions elsewhere.

"The Defiant model has always focused on creating games nobody else would. Games that reflected the skills and passions of our team. Games that did something new. Our process has always been focused on iteration and exploration," reads a statement.

"That is a risky way to make games, and we knew that. When it succeeds it delivers things you could never have considered possible. When it fails, it leaves you without a safety net.

"The games market has changed in ways both big and small in the 9 years we've been in business. We have not been able to change quickly enough to continue with them."

Before signing off for good, Defiant praised the current shape of the Australian games industry, and suggested the country has come a long way in a relatively short space of time. 

"In 2010, Australia desperately needed studios to demonstrate that it was possible to have substantial, Australian owned, IP generating homes for talent," it explained.

"That there could be a studio model in Australia that would thrive without being dependent on international ownership. That Australian studios could make console games again. Nine years later, there is no question that is true, and there are many Australian studios old and new demonstrating that Australian game development is truly world class."