MotorStorm, World Rally Championship, and DriveClub developer Evolution Studios is being shut down by Sony.
Evolution has a history of shipping quality racing games, but the developer's most recent release, DriveClub, has been the source of numerous headaches for Sony, following multiple delays and a shaky launch.
In an attempt to salvage the racer Sony eventually laid off a number of Evolution staff in March last year.
Following those redundancies, Sony explained that a restructured Evolution Studios would focus on "DriveClub as a service" going forward.
However, almost a year to the day after those restructuring efforts were announced, Sony has confirmed the studio will be closing for good.
"Regular reviews take place throughout SCE Worldwide Studios, ensuring that the resources that we have in such a competitive landscape can create and produce high quality, innovative and commercially viable projects," said Sony in a statement picked up by GI.biz.
"As part of this process we have reviewed and assessed all current projects and plans for the short and medium term and have decided to make some changes to the European studios structure.
"As a result, it has been decided that Evolution Studio will close."
Sony described the decision as "regrettable", and insisted it would do everything in its power to reallocate Evolution staff to other projects. It did, however, accept that it will have to make some compulsory redundancies.
"We will assist staff in any way we can, including speaking with local employers and with other development companies," the statement continues.
"This decision should not take anything away from the great work that Evolution has produced."