Stormfront Studios -- developer of acclaimed titles such as the original Nevewinter Nights, and The Lord of the Rings: The Two Towers -- is reported to be closing down shortly. According to Next-Gen, the closure was announced internally yesterday, and is due to poor business performance.

Stormfront Studios has been in operation since 1988 -- founded under the name Beyond Studios. In 1989 the company created Quantum Space, the first play-by-email computer game, offered through a then-nascent America Online service. Later, the company created Neverwinter Nights, the first graphics-driven massively multiplayer online game, which was honored at the 2008 Consumer Electronics Show. More recently Stormfront has worked with numerous intellectual properties such as The Spiderwick Chronicles and Eragon.

Stormfront consists of 33 full-time employees, all of whom were informed of the closure on Monday. A representative speaking to Next-Gen cited the current economy, as well as slowed revenue on a current project, as reasons for the closure. Another one bites the dust.

Read - Breaking Report: Stormfront to Shutter Studio [Gamasutra]
Read - Stormfront Studios Closing [Next-Gen]