No one expected this.
Updated September 21, 2018: Telltale just announced that the studio is closing, and they’re only retaining 25 employees to fulfill obligations. The closure is attributed to poor sales. The Walking Dead: The Final Season will also end after Episode 2. The 25 employees will only work on Minecraft: Story Mode for Netflix.
According to various Telltale Games employees, the developer is closing down soon and has laid off the majority of its employees. The Verge reported that only 25 developers remain to finish The Walking Dead: The Final Season out of 250. This is shocking news to say the least because the studio is regarded as one of the best storytellers in the business. There was no indication that the company was in such a dire situation.