Activision confirms internal studio closure

45-strong California-based Underground Developments will close at the end of May; staff offered jobs at other Activision studios
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Activision has confirmed our report from yesterday that its internal studio Underground Developments is to close soon.

"Activision is closing its Foster City development studio which had less than 45 employees," a company rep told

"We are currently making efforts to find opportunities for all employees at other Activision studios."

No reason was given for the closure, however.

The studio had been working on the PS3 version of Enemy Territory: Quake Wars. It had been founded in 1994 as Z-Axis and acquired by Activision in 2002.

It's the fourth North American studio to close this month. Canadian team Pseudo and US studios Stormfront and Castaway all confirmed they would be closing their doors in the past 20 days.