A news post on the Ready At Dawn website explains the unfortunate circumstances:
Most days we feel privileged to do what we do. Some days not so much. Today just plain sucks.With Ghost of Sparta expected in the third quarter of 2010, it's likely the project referred to as finishing up. The one they have yet to ramp up for, then, would seemingly be an unannounced new project. Ready at Dawn also got into the game engine business earlier this year and presented the Ready at Dawn Engine at GDC. Previous games they've worked on include God of War: Chains of Olympus (PSP), Daxter (PSP), and the Wii port of Okami.
We've spent the majority of our time at RAD hiring the best and most talented people to join our team. Today, we had to let go of 13 of these people because we simply couldn't keep them on board while one project finishes and another ramps up. Unfortunately, these are the woes of being independent...
It sucks. There are no other words for it.
We wanted to wish the best of luck to those guys and girls who have been a part of our crew. We sincerely hope that you will all land back on your feet real soon.