Leigh Alexander posted some insight over at Gamasutra concerning the closure of Irrational Games. As suspected, it was because of money and the fact that BioShock: Infinite did not sell enough units to justify its bloated budget.
Every studio has its share of disgruntled employees and it looks like Irrational was no different. Several employees have expressed discontent with the studio’s creative lead, Ken Levine, stating he was difficult to work with.
After reading the speculative piece, it’s tough not to consider the fact that this was a long time coming. Unless BioShock: Infinite sold like Grand Theft Auto V, this studio was doomed. No publisher can afford to have one of their studios take six years to develop a game and break even or worse.