US developer Republik Games has announced that work on its "erotically charged" flagship title, Spend the Night, has been suspended after the company failed to secure extra financing.
Republik had already completed two successful rounds of funding for the game, which was "well into production", according to an official statement.
"The past few weeks have been a rollercoaster for the company," said CEO Robert Coshland - observing that Republik's website once received 1.8 million hits in a single day, and that more than 100 people sign up for the company's mailing list on a daily basis.
"Unfortunately, game development is expensive and attention doesn't translate into operational funds," Coshland said.
He confirmed that 12 people had been affected by the shutdown, and said that the company will still be seeking new investors for the project.
"Republik Games intends to focus on raising new capital. It's not just an incredible product - it's a solid business proposition and we have the research, the materials, and the numbers to back it up."
Spend the Night is a PC title which allows players to interact online, go on virtual dates and have virtual sex. Back in January, Coshland described it as "a serious title for the emerging genre of social video gaming."