Quality doesn't always pay the bills, as Clover Studio found out today. Capcom's Board of Directors has elected to dissolve the promising studio, which was formed in July 2004 and brought us the acclaimed Viewtiful Joe series before unleashing its masterpiece, Okami, just last month (in North America). Clover's latest project, God Hand, was released just this week! Here's Capcom's cold official explanation:

"Clover Studio Co., Ltd. has met the goal of developing unique and creative original home video game software, however, in view of promoting a business strategy that concentrates management resources on a selected business to enhance the efficiency of the development power of the entire Capcom group, the dissolution of Clover Studio Co., Ltd. has been raised and passed at a Board of Directors' meeting."

But it may not be all doom and gloom. Wired's Game|Life blog reports, via anonymous sources, that the superstars behind Clover have decided to up and make their own independent development studio. So, if Game|Life is correct, then Capcom's dissolution of Clover could simply be because Clover had jumped ship, eager to get out from under Capcom's oppressive thumb and finally make the creative and unique games they'd always dreamed of ... err, wait a second.

[Thanks to everyone that sent this in]

Capcom has released a third trailer for God Hand, a project that boasts such talent as Resident Evil creator Shinji Mikami as director and Viewtiful Joe creator Atsushi Inaba as producer. The new footage features some outrageous ass kicking, including groin assaults, spanking, homerun swings, and an exploding body. Sprinkle a dash of clever, but campy dialogue into the mix and you've got the ingredients for a classic.

If God Hand is any indication, the best Sony console to own this holiday season is still gonna be PlayStation 2.

Continue on to view the trailer...

Capcom has confirmed that God Hand is currently in development for the PS2 in Japan. While a company rep declined to give further details about the title and the possibility of its release outside of Japan, JeuxFrance.com claims that God Hand will be an action title crafted under the guidance of Shinji Mikami (director) and Atsushi Inaba (producer).

Both Capcom vets have impressive resumes, which could lead to a successful formula. Inaba has produced the Viewtiful Joe series, as well as Okami (due in September). Mikami's work also includes Viewtiful Joe, along with Devil May Cry and Capcom darling, Resident Evil.