Studio Onoma, formerly Square Enix Montreal, has been shut down by Embracer Group AB only weeks following the rebrand. As part of a larger cost-cutting initiative, Embracer is also rethinking other projects, and is seeking to bring Microsoft on-board to aid with the development of some upcoming games.

Square Enix Montreal was acquired along with Crystal Dynamics and Eidos Montreal by Embracer Group AB in a $300 million deal in August. Extensive efforts to rebrand Square Enix Montreal for a more modern image followed, culminating in October with the new name “Onoma.”

As Square Enix Montreal, Onoma was responsible for the Hitman franchise’s Hitman Go mobile spinoff series, and was expected to continue developing further titles following the release of Hitman Sniper: The Shadows in March this year. The report revealed that Embracer chose to transfer some Onoma staff to sister studio Eidos Montreal, while the fate of the rest remains currently unknown.

Though Embracer recently acquired IP rights for “The Lord of the Rings” and “The Hobbit” franchises and has declared plans to continue acquiring more properties, it appears that strategy has not been perfectly successful. According to the report, Embracer is seeking to downsize and cut costs across the board, axing one unannounced project and scaling back another. Embracer is also reportedly to bring on Microsoft to help develop multiple games, including a Fable franchise title under UK developer Playground Games.

Source: Bloomberg