This is the text of the Nov 28, 2011 posting on the site:
Hero Games has been around for 30 years with ups and downs. The economy's been pretty rough lately, as has the gaming market. With declining sales and fewer releases, Hero has reached the point where it's no longer possible to maintain a full time staff of three, so it's scaling back.
Darren and Steve will be departing December 2nd, with our thanks for a decade of hard work that gave us 108 books, and best wishes for their future endeavors, which may include producing new books under a Hero System license. We'll keep you posted on that.
Jason will remain to continue shipping books and handling day-to-day matters. Existing books will continue to be available for purchase, and the company will continue in business, just a bit more slowly. The online store remains open. Steve will continue to answer rules questions on the Hero boards as "the guy who wrote the rulebook."
We're looking into doing a Kickstarter to print Book of the Empress, since it's complete and ready to go.
For the near future Hero would appreciate your kind thoughts and your patience. Transition periods of this sort take time, and Jason has a lot of work cut out for him, so the support of our fans is much appreciated.
Oh, hard times all around. It may be that a new model is needed for the industry, because HERO was impressive in terms of its continuous output.
I still have hope that it will continue in some form until the next boom in RPGs.