Activision has confirmed rumours it is to close its Underground Development studio, GamesIndustry.biz reports.
The publisher acquired the studio in 2002, when it was known as Z-Axis. The name was changed to Underground Development in February.
UD is best known for producing the Dave Mirra Freestyle BMX and Aggressive Inline series. It also worked on the PS3 version of Quake Wars: Enemy Territory, due to launch on 30th May.
"Activision is closing its Foster City development studio which had less than 45 employees," said a spokesperson for the publisher.
"We are currently making efforts to find opportunities for all employees at other Activision studios."
Underground most recently worked on the PS3 version of Enemy Territory: Quake Wars, which is due out here on 30th May.
Activision expects the studio to lock its doors permanently by the end of May.