PSP owners have received a bit of sad news today as Ready at Dawn, the studio behind two of the PSP’s arguably best games (Daxter and God of War: Chains of Olympus), has announced that they are officially done with PSP development. For those hoping this is just a really late April Fool’s joke, the studio seems serious, as they have already packed up all their PSP dev kits and sent them back to Sony.

The news is not entirely unexpected, as Ready at Dawn had already stated following Chains of Olympus that, "our work on the PSP has come to an end." Still, it’s rough to see such a great studio, who created such amazing content, pack up and head on to other realms.

Thus far, the company has no made no announcement about what they’ll be doing next, though many speculate they’ll be making the jump over to consoles. The group was behind the Wii port of Okami, so it seems that now that they have tasted the sweet nectar of the waggle, it’s intoxicating powers have pulled them away from handhelds and into the realm of the living room.

Good luck to Ready at Dawn in their future endeavors. After playing both Daxter and Chains of Olympus, I can safely say this is one of the most talented groups out there, right up alongside Insomniac and Epic, so I believe we can expect great things from them in the coming months and years.