NCSoft is closing Paragon Studios and terminating City of Heroes / Villains.
It seems that this has come as a shock not only to the games' community but also to the developers themselves. If you do some Google searching, you will eventually find articles talking about Nexon and NCSoft performing a merger and offering to acquire an as-yet unknown company, possibly EA or Activision. — http://www.kdbdw.com/bbs/download/161672.pdf?attachmentId=161672
It's entirely possible this is a direct result of PWE acquiring Cryptic and Cryptic having transitioned two titles to the F2P model with a third title using them same game engine (which arguably should cut down their development cycle and funds) coming 2013.
Personally, I think NCSoft (and Nexon) figured out they simply cannot compete in the Superhero arena, while Cryptic is now marching into the High Fantasy with Never Winter Online.
August 31st is a sad day for Superhero fans, MMO fans and Paragon Studios, and come December CoH/V will be no more.
Hopefully, PWE/Cryptic will hire the talent forcibly ejected into the job market before Paragon Studios closes their gates!