In environment over the years where so many game developers downsize after making a game and with so much massive restructuring for major game related companies like Sony and Xbox around the same time Konami decided to make the coolest looking game studio ever in the West.
Fall back to 2013, then laugh at the fact that the studio was around for only three years at what had to be millions dollars. It was big LA news for someone to take a Howard Hughes home -yeah, one of the richest SOB's on the planet in his time -and transform it into a modern and amazing game studio mostly for Kojima himself.

Oooh, that has to hurt.
Well, that dream is now dead.
Just look through the pictures and you'll see one of the nicest looking game making facilities; I wonder what the THQ offices looked like when it went under. Hope we see LA Game Space looking as nice, ah just kidding they've taken our money and wasted it.
Wasted money is what the whole venture has been as now after so few years of service, the studio was terminated as of last month, of course being re-named Konami Los Angeles.
The reasoning for the company coming out West was mostly bravado, a big look at me moment for Konami. But, in genuine need, LA is a city to hire everyone for game services. You need developers, they're here or in San Fran. You don't need such a beautiful facility to make those games though, especially when most other companies are dying or went though massive restructuring.
To blow millions of dollars on a new studio campus on the whim of Kojima, ouch.
It goes back to what we write about often, the Japanese not understanding the American market, the petty nature of it's companies-anything Kojima related had to go, just common sense.
You don't build a new studio and lose it three years after it's done unless you really screw up.