Project Sora, the studio headed up by Smash Bros. Masahiro Sakurai, has been dissolved.
Project Sora, a spin-off studio of Sora Ltd. (both run by Sakurai), last worked on Kid Icarus: Uprising. Sora Ltd. was established in 2005 as freelance gaming agency for Sakurai to work on games, and Project Sora was established in 2009 as a development studio.
While some are under the assumption that Project Sora was only supposed to work on Kid Icarus: Uprising, Nintendo president Satoru Iwata indicated otherwise last year.
In an interview that appeared on the Project Sora website, Iwata said he wanted to make an announcement regarding Project Sora. He said that after Kid Icarus: Uprising was finished, work would begin on the new Smash Bros. games. A year later, work has begun, but without Project Sora.
Last month, Sakurai and Nintendo revealed that Namco Bandai was developing the next Super Smash Bros. games—now, it seems this was because there were plans to break up Project Sora.
The company's official site states that as of June 30, Project Sora is no more. There was no reason given as to why the studio was shuttered. The company's homepage will continue to remain up until July 31.
Project Sora [Official Site]