Electronic Arts has ended its deal with Pandemic's Brisbane studio, according to internet reports.
The studio will retain its own intellectual property and equipment, according to blog Kotaku, and is currently looking for new partners.
"It was more of a 'find a new publisher. Good luck.' kind of thing," said an unnamed source.
EA bought Pandemic and BioWare towards the end of 2007, with CEO John Riccitiello stating; "They'll make a strong contribution to our strategic growth initiatives on quality, online gaming and developing new intellectual properties."
However, Electronic Arts is currently making cutbacks to projects and staff, and will publish less titles during the 2010 financial year.
Nine studios are to be consolidated or closed by the publisher, with around 1000 staff set to be made redundant by March this year.
GamesIndustry.biz has contacted EA for further details.