I would say it's a a severe case of total incompetence on their part If they don't manage to make money out of a game that was at the top of the sale charts.

Oh hey, what a coincidence, I didn't like these. Actually, I was planning to review them in the near future.

Sad to see any dev close down, especially one that made two games that all my console-playing buddies loved.

There is if Activision was taking the lion's share of profits, if they can't make payroll then Activision is a bunch of assholes (signed, lopsided contract notwithstanding).
Prototype was amazing, seriously, it was like nothing I'd ever played when it came out. I can see why some people might not like that kind of game but I refer you to this: http://www.penny-arcade.com/comic/2009/6/19/

Prototype is filled with that level of awesome.

Pretty much, I got a copy from Gamefly because it was one of 3 games that they had which looked interesting. I was just blown away by the story and the various plot twists. The end battle was interesting as well.

RE stopped existing the moment they were bought out.

I think 'RIP' should be said to studios who get bought out, since they are no longer independent and merely act as divisions / offices of a given publisher... when they get shut down, the publisher is the one affected, not the studios, since they stopped existing.

I'm not sure that makes any effective difference to the suddenly unemployed people.

Of course it doesn't. But people whine that Activision killed RE now when they died a long time ago.

Oh no, what a terrible loss of talent! :/

Big publisher closing down another studio. Not a big surprise but unfortunate none the less.

Sometimes I wonder how Bungie is going to survive under the rule of Activision

It is not owned by Activision. They only signed a 10 year publishing deal.

hey, you guys are generous. I thought Prototype was a bit of a stinker. Action for action's sake, it seemed, and for a while it was fun, but quickly became boring. Forgettable, and not one I'd ever return to.

Also, web of intrigue became a bit of tedium as you tried to get the entire story.

The Expendables was "action for action's sake", but that didn't inhibit it from kicking ass.

That's a shame. Best wishes for the people involved.