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Sega has massively downsized its mobile arm, with the suggestion that studio Three Rings Design has been completely closed.

Refusing to detail how many employees were affected, Sega told VentureBeat that: “In response to challenging and hyper-competitive mobile market conditions, Sega Networks Inc., Sega’s mobile division in the West, has refocused its operations and made a reduction in workforce.”

It hinted that among those hardest struck was Puzzle Pirates and Spellwood developer Three Rings Design, which was acquired by Sega back in 2011.

Sega issued a comment hinting that the studio may have been completely shuttered as a result of the move.

“As a result, we said goodbye to our talented friends and colleagues at Three Rings Design Inc. alongside a small number of team members on the publishing side of Sega’s mobile division.”