Senior management and ex-staff from Bizarre Creations have announced the formation of a new studio, Lucid Games.
Peter Wallace, managing director, will lead the team as it looks to staff up, creating as many as 50 positions at the dev house.
"With the great history of Bizarre behind us, we are proud to be part of Lucid and are committed to the UK game development community," he said.
"We plan to build a studio which encourages open communication with its partners, customers and other developers."
The new studio is backed by Liverpool Vision, a local economic development company keen to keep the renowned talent from Bizarre in the region.
"Liverpool Vision has been keen to keep what is some of the best games talent in the global games market in Liverpool and from day one we have been very supportive of this initiative," said Steve Smith, digital industry director for Liverpool Vision.
"This world class talent combined with a very credible and experienced management team, we believe offers the best future for a sustainable and viable business within the significant Liverpool gaming sector.
"It should be stressed that Bizarre was very successful and Activision's actions were driven by global economics and not by any failure of the creative talent based in Liverpool".
Activision officially closed Bizarre Creations, creators of Project Gotham Racing, Geometry Wars and Blur, last week.
"Our approach is to create for fun, quality and simplicity – it's how our games make you feel that matters to us. We are committed to hiring character, hiring talent and training skill," added Wallace.
"It's not about qualifications or years in the industry, we are looking for creatives with a positive attitude and plenty of aptitude.
"If you are interested in being a part of something new and feel you can meet or exceed the standards you have seen in our previous games then get in touch."