A new report from UK trade mag Develop's website has said that UK-based Sega Racing Studio, founded in 2005 to develop racing games for the multinational publisher, has ceased operation
"effective immediately," quoting a "former staff member."
Develop also notes that the studio currently had around 60 staff members working on multiple projects, and adds that it was not clear according to early reports whether any or all of these staff will be laid off or offered positions elsewhere within Sega, which maintains other UK studios.
Sega Racing Studio was first formed in 2005, with its first title, PS3, PC and Xbox 360-based Sega Rally Revo
, released in 2007. Intended to revitalize the company's popular '90s arcade racing series, it was met with largely positive reviews -- particularly from the UK press -- but managed little in the way of sales, especially in markets outside Europe.
The studio had no announced games in production at this time, so no cancellations of known titles result from this closure. However, on top of the recent closure
of Pseudo Interactive, the future of Sega's racing series is precarious -- as that studio worked on Full Auto
and its sequel for the publisher.
Gamasutra has been in contact with Sega of America but, as of press time, is still awaiting official confirmation.