Robert Daly, head of developer Pipeworks Sware, has resigned from his post after controversy over his military credentials.
"I am honoured to have served with the 12th Special Forces Group as an Intelligence Analyst (96B) from 1991 until 1994," said Daly.
"While I wore the green beret as part of my uniform, I utterly regret that I have misrepresented my role by creating the impression that I was a Green Beret. I have nothing but the utmost respect for the Green Berets and my fellow servicemen, and I respectfully apologize to the Special Forces community."
Daly had been with the company for 5 years.
Earlier this month IndustryGamers broke the story that Daly had misrepresented his status as a United States Army Special Forces soldier.
Pipeworks Studio developed a title based on the popular American television show Deadliest Warrior, where fighters from various historical periods are pitted against each other. Daly's military background was used to lend weight to the game's military authenticity.
"At this point in time for the best interests of Pipeworks Software and F9E I am voluntarily resigning my position of Studio Head of Pipeworks effective immediately. Furthermore I have no plans on appearing in any more episodes of Deadliest Warrior."
Daly was caught out when professionalsoldiers.com obtained his records from the military from the US's National Personnel Records Center and United States Army Special Operations Command, which showed he was an analyst, rather than a Special Forces soldier.
Pipeworks was founded in 1999, developing Rampage: Total Destruction, Zumba Fitness and uDraw Studio. It is also part of indie developer collective Foundation 9 Entertainment. It also created Deadliest Warrior: The Game for XBLA and PSN in conjunction with Spike television.