Apparently, the game simply could not find a critical mass large enough to be financially viable. The developers explained it simply: "Unfortunately, Glitch has not attracted an audience large enough to sustain itself and based on a long period of experimentation and our best estimates, it seems unlikely that it ever would."
While Tiny Speck will continue with a smaller team working on other projects, many of Glitch's developers are now looking for work elsewhere. The studio posted a closure FAQ that included reasoning behind the shutdown and information on how to obtain refunds for money spent on the game.
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- Source: Glitch shutdown notice