I never enjoy reporting on studio closures and the fact that it’s so close to Christmas makes this news even more difficult.

Based on sources and numerous reports, it appears that the Irving, Texas based Terminal Reality has shut it’s doors. These were the people that brought us games like Bloodrayne, 4×4 Evolution, Ghostbusters: The Video Game and the recent clunkers Star Wars Kinect and The Walking Dead: Survival Instinct.

I say “appears” because of the fact that no one can seem to get a straight answer or official confirmation. There is an almost overwhelming amount of evidence to suggest that the studio is no longer functioning. Gamasutra found a former employee (Jesse Sosa, a 10 year vet) via Facebook who posted that the studio “seems to have finally shut down.” A visit to the studio’s main site redirects people to their Facebook page while it goes under “renovations” but their Facebook page has not been updated since October (and rarely before that) and their Twitter account since March. Lastly, Joystiq attempted to contact the studio in a sort of last ditch effort only to find that the phones had been disconnected. I don’t know about you, but if you add up everything above, the fate of the studio doesn’t seem to be a good one.

I’m an optimistic person by nature but there’s just way too much evidence stacked up here to hope for the best. As such, I want to wish everyone affected all the best and a happy holidays.