The New York City-based developer of Homefront, Kaos Studios, has been shut down, according to a source close to the studio. It's not clear if the shutdown was due to the performance of the game, the high cost of operating a studio or some combination of factors. We've reached out to THQ for official confirmation.

UPDATE: Describing it as "a strategic realignment within its internal studio structure," THQ confirmed in an e-mailed statement that Kaos and the company's UK studio have been shuttered. THQ's Montreal studio "will take over product development and overall creative management for the Homefront franchise," the company noted. While declining to answer direct questions from Kotaku about whether the cost of living in New York or the quality of the first Homefront were factors, the company did not that it is hiring for its Montreal, Vancouver and Austin, Texas studios. Plus: "THQ's UK studio and KAOS employees will have the opportunity to interview for open positions with the company globally."