DJ Hero developer Freestyle Games has escaped the Activision chop.
The UK studio is now working on a secret project described to Eurogamer as "very, very exciting".
"Over the past three months we have examined a number of options for our studio's future with Activision," creative director Jamie Jackson said.
"Today we are excited to share with our fans and community the news that we will continue our strong partnership with Activision, with work starting on a new, innovative project.
"While we are still in a consultation process with the studio, we cannot release details about the project we will be working on but we look forward to sharing more information in the coming months.
"We'd like to thank the team, our fans, the media and the video game industry at large for their support during this period."
Design director David Osbourn confirmed that around 35 staff have been affected.
"We envisage that approximately 35 roles will be impacted and are consulting with the studio to offer tools and resources, including outplacement counselling services and career fairs etc to those employees affected," he said.
"Although we will be really sorry to lose members of the Freestyle Games family we have no doubt that their talents will be in high demand throughout the industry."