Sony to close Studio Liverpool

Sony is to close Studio Liverpool, developer of the WipeOut series.

The news, broken on the GRCade gaming forum and since confirmed by Studio Liverpool staff on Twitter and to us by multiple sources, heralds the true end of an era of British videogame history. Founded in 1984, Psygnosis was a true force in British development throughout the 80s and 90s – read our reflection on Psygnosis and Studio Liverpool's best games here. 

The forum poster who broke the news claims all projects have been cancelled, adding: "They got rounded up this morning and Michael Denny explained the company was being "reorganised"."

Sandy Lobban, an audio lead at the studio, tweeted to say: "End of an era today for Studio Liverpool. Honoured to have been a part of it."

CVG has been told Studio Liverpool is to close. We're finding out what we can about this, and will update when we have more.

UPDATE: We've been passed an official statement from Sony, which you'll find below in its entirety.

"As part of SCE Worldwide Studios, we do regular reviews to ensure that the resources we have can create and produce high quality, innovative and commercially viable projects in an increasingly competitive market place. As part of this process, we have reviewed and assessed all current and planned projects for the short and medium term and have decided to make some changes to our European Studios.

"It has been decided that Liverpool Studio should be closed.  Liverpool Studio has been an important part of SCE Worldwide Studios since the outset of PlayStation, and have contributed greatly to PlayStation over the years. Everyone connected with Liverpool Studio, past and present, can be very proud of their achievements.

"However, it was felt that by focusing our investment plans on other Studios that are currently working on exciting new projects, we would be in a stronger position to offer the best possible content for our consumers.

"Our Liverpool Facility will continue to operate, housing a number of other vital WWS!E and SCEE Departments.

"This should not take anything away from the great work WWS are doing and the incredible games and services that we have made, and continue to make, both for this coming year and further in the future."