Codemasters has told Eurogamer it is "proposing to retire" the studio responsible for lacklustre shooter Bodycount.
The 66 staff at Codemasters Guildford have just been informed. The 30-day consultation period begins today.
If "progressed", the studio will be closed 30 days from now.
Guildford is being closed so Codemasters can focus on and beef up the successful racing team at Warwickshire HQ (Dirt, Grid, F1 Online, EGO engine). Additionally, a new team will be formed alongside the F1 2011 team in Birmingham to work on "a new racing IP".
Should Guildford close, staff will be "encouraged to apply for suitable positions on campus [Warwickshire] and in the Birmingham studio".
"As Codemasters looks to take greater leadership in the racing category, the company is proposing a studio structure that adds resource and strengthens our best-in-class racing teams," the company told Eurogamer.
"The output from the studios on the Warwickshire campus and in Birmingham is on the increase with multiple continuing game series, brand extensions and new racing IPs in production. Both the Warwickshire and Birmingham studios have won BAFTAs for their critically acclaimed, multi-million selling titles and the company is adding resource to ensure they constantly over achieve in this competitive sector."
Bodycount suffered a turbulent development. Months after the game's March 2010 announcement, star signing and executive producer Stuart Black - maker of acclaimed last-gen shooter Black - left the team. He was followed months later by the studio's general manager Adrian Bolton.
Rumours of departures and lack of funding dogged the project throughout 2011. In June, Bodycount game director Andrew Wilson went on the record with Eurogamer to deny the rumours.
Eurogamer has discovered that Andrew Wilson has now moved to Ubisoft Montreal.
Bodycount was eventually released in September 2011.
Eurogamer's Bodycount review awarded a disappointing 4/10.
Bodycount went on to barely dent the UK software chart, debuting in the all-formats top 40 at 36th.