In short, Castle said that the company, which was trying to push technology that would embed high end games into web sites similar to Flash web videos, wasn't making enough money for its parent company IAC. He states, " ... we certainly were affected by the fact that it was quite an expensive operation. We still had quite a ways to go, six months to a year, before we would be completely on track."
He added, "I can't blame IAC, which put a ton of money into the project. At that point in time they just said it would just be better for them to discontinue operations and take the write-offs, because they had a strong year, and not continue to play in a space that they weren't comfortable in." The game engine part of InstantAction was successfully sold off and is now a separate company under its original name of GarageGames.