Originally posted by: Gaffer Tape

And Chalts, tell me more. I haven't really kept up with Capcom in several years, so I don't even know about Clover Studio to begin with.

Clover Studio was created earlier this century. They're responsible for the Viewtiful Joe series and IGN's Game of the Year 2006 Okami. Basically, they're known for making great unconventional games whereas Capcom as a whole is known for a few good games and a bunch of crappy Megaman Sequels. And of course, it's Clover that gets the axe.

Anyway, three of Clover's major developers reformed a new studio not affiliated with Capcom called Seeds. Gamespot has an article here