Activision has confirmed that its Liverpool studio Bizarre Creations faces closure - with a sale of the studio a possibility.
We broke the news earlier today that the studio faced closure, with 200 jobs at risk.
Its parent, which bought the team in 2007, has since issued a statement, reading:
"Over the past three years since our purchase of Bizarre Creations, the fundamentals of the racing genre have changed significantly. Although we made a substantial investment in creating a new IP, Blur, it did not find a commercial audience.
"Bizarre is a very talented team of developers, however, because of the broader economic factors impacting the market, we are exploring our options regarding the future of the studio, including a potential sale of the business."
Blur was the new racing franchise Bizarre created for Activision - the game arrived on PS3 and 360 in May, and although it has a great Metacritic rating, the game saw middling sales.
Bizarre also recently completed 007: Blood Stone.
Reports today also suggested Activision is closing or downsizing Budcat Creations, one of its US studios.