It looks as though the economic bug has bitten another in the video gaming world. Wild Tangent, which is not a video game giant but has its ties, has closed the internal development studio and also excused 20 people from their positions for the time being. CEO Alex St. John, who is best known for his comments about this era of consoles being the last, has been promoted to chairman, and COO Mike Peronto will take St. John’s CEO position.

Wild Tangent is best known in the video game world for the PC game Fate, and has also been living and breathing on its Orb Digital Distribution Service and alleged spyware business, which made casual computer game compatibility with Vista possible.

Though the loss is not as huge to the video gaming industry as the jobs cut at EA and THQ, it goes to show that more and more companies in the video gaming industry are cutting their losses in these economic times. So, who’s next?