Didn't come as a surprise really, the last title they published was Prey, and that was like three years ago. There's only so long you can leech off of old games and only so much time you should spend on developing a game.
They released some (development) footage after the shutdown though, and it was looking pretty good. But yeah, it was time to kick ass and chew bubblegum seven years ago, but they were all outta gum.