Not too long ago, Visceral Games was reported to be hiring more staffers for one of their upcoming projects. Now we're hearing that the studio's Australian arm has been shut down.

Gaming news blog Kotaku reports that according to a source from Visceral Studios in Melbourne, Electronic Arts has chosen to close its doors for good after its current project was deemed uprofitable. The decision was reportedly handed down by DICE's Patrick Soderland, who is now the vice president of EA's Games Label.

EA has yet to say anything official on the matter, but the Melbourne branch of the International Game Developers Association has said via Twitter that they have received confirmation of the closure.

Visceral's Melbourne studio worked on Dead Space 2, Godfather 2, and Dante's Inferno. While nothing official was ever made public about the studio's new game, it had apparently been in development for three long years before EA chose to shut it down. Visceral Games currently has two games on its slate: The Ripper and Dead Space 3.

It's always sad to hear about the closure of yet another game studio, especially one with experience on a hit like Dead Space. All we can do now is hope that the people who lost their jobs (21 in all, according to the IGDA) get new ones soon.