UPDATE: Activision has issued a clarifying statement in which it explains that it's in the process of plotting out a future for Bizarre Creations - a future that could include a sale.
"Over the past three years since our purchase of Bizarre Creations, the fundamentals of the racing genre have changed significantly," said a spokesperson for the publisher.
"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."
ORIGINAL STORY: Activision is planning to shut down Liverpool-based studio Bizarre Creations, if substantial Twitter activity is to be believed.
Travelers' Tales boss Jon Burton started the ball rolling, tweeting, "Sad Day for games developers. Really glad I didn't sell my company to Activision."
Further tweets from numerous members of the UK development scene added that around 200 staff are facing the axe, with Activision likely closing the studio.
We've followed up with both Activision and Bizarre and will update as news breaks.
Bizarre Creations was founded in 1994 and made its name with the Project Gotham Racing series for Microsoft Game Studios. Activision purchased the studio in September 2007.
Bizarre Creation's last game, James Bond 007: Blood Stone, launched to mediocre reviews last month. Other titles in its back catalogue include the excellent Blur, Geometry Wars, Boom Boom Rocket and The Club.
Will you support Eurogamer?
We want to make Eurogamer better, and that means better for our readers - not for algorithms. You can help! Become a supporter of Eurogamer and you can view the site completely ad-free, as well as gaining exclusive access to articles, podcasts and conversations that will bring you closer to the team, the stories, and the games we all love. Subscriptions start at £3.99 / $4.99 per month.