Sony Computer Entertainment Europe has confirmed to GamesIndustry.biz that it is to close or cancel a number of games across its UK studios.
"It has been decided that production on a small number of projects within London Studio, Studio Liverpool, and Evolution Studios will be streamlined or closed due to a portfolio review and project prioritisation," said the company in a statement.
"This decision was made following an internal review of all games and it was deemed that with the incredibly strong list of exclusive first party titles coming up both this year and in the near future, resource should be reallocated to enhance those projects closer to completion.
Despite canning projects in development, Sony said that the UK was still an essential contributor to its Worldwide Studios group.
"The affected first party studios have been and will continue to be vital assets within the WWS family, and have a history of producing genre defining games such as MotorStorm, WipEout, SingStar and EyePet. This decision will have no impact on the role that our first party studios will play in the future of all PlayStation platforms."
Sony would not comment on the amount of staff made redundant by the move.
The move comes as the format holder releases its high-profile racing game MotorStorm: Apocalypse next week, which is already receiving positive reviews in the specialist press and creating a buzz amongst consumers on social networks.
GamesIndustry.biz understands that staff were informed of the decision this afternoon. Sony Liverpool was also hit with restructuring at the begining of last year.