Publisher Perfect World has announced the closure of the Seattle-based development studio for Runic Games, something made public the same day it was revealed that it hit Gigantic developer Motiga with severe layoffs.

In a statement received by Gamasutra, Perfect World says that the decision came as a result of "the company's continued strategy to focus on online games as a service." Runic's latest game, the single-player action adventure game Hob, released just over a month ago. Before that release, Runic made a name for itself through the 2009 action RPG Torchlight and its followup Torchlight 2.

The company says that Runic Games will continue to exist as a part of Perfect World, but it is worth noting that the Seattle office that it shut down is Runic's sole location. 

As always, if you or someone you know has been affected by layoffs or a studio closure, you can email Gamasutra to share your story confidentially.

The full statement can be found below: 

“Following the news that Motiga has reduced the staff of its studio, Perfect World Entertainment can confirm that as the publisher of Gigantic, the game will continue to be available on our platforms. A core team of developers remains at Motiga, who will work with us to support the game and its players, including moving full steam ahead with the upcoming November update and future content. We cannot thank everyone enough for their contributions in making Gigantic the outstanding experience it is today.
 
Perfect World Entertainment recently closed the Seattle office of Runic Games as part of the company’s continued strategy to focus on online games as a service. We’re grateful to the team for all of their hard work bringing incredible experiences like Torchlight, Torchlight 2 and Hob to life. Runic Games will remain a part of Perfect World Entertainment’s portfolio of studios, and its games will continue to be available to players, as we stay committed to supporting and growing Runic Games’ beloved franchises.
 
The staff reduction at Motiga and the closure of Runic Games Seattle were unrelated. Perfect World Entertainment stands committed to delivering the best massively multiplayer online gameplay experiences to our players.”

Update: Runic Games has released its own statement through its website, confirming that today marks the last day for the studio and, it seems, for its staff as well.