The Maxim development project is expected to announce the news in an interview with the Associated Press on Wednesday.
It is the second major project to announce its demise this year, as the company’s $1 billion acquisition of the Denver-based company in July left it with a small office and two-person staff.
Maxim is not expected to go bankrupt until next year, and is instead focused on developing its next game, which will be released in 2018.
In an interview Wednesday, CEO Chris Koehler said he did not want Maxim to “fall apart” and that the company was focused on the development of its next project.
“We are making progress,” Koehl said.
“It’s just the next game.”
Maxim has struggled with a lack of staff, and its games have struggled to gain traction in a crowded space, even with a dedicated fan base.
Its first game, “Moby Dick,” was released in 2015, and it has yet to make a sequel.
Maxis co-founder Mike Belshe said in the interview that his team has been working on Maxim 2.0, which he said would be a sequel to Maxim 1.0.
Belshey declined to name the game or the studio.
In January, Maxim said it would move into a new development facility in Bellevue, Wash.
It will also have an office in Redmond, Wash., the site of the former Bellevue Lab.