Respected UK racing studio Bizarre Creations may be sold by owner Activision, after its most recent new IP, Blur, failed to find a commercial audience.
Activision has today said that it is exploring options for the business, after rumours emerged of lay-offs and a possible closure.
"Over the past three years since our purchase of Bizarre Creations, the fundamentals of the racing genre have changed significantly," said the publisher in a statement.
"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."
Activision bought Bizarre Creations in 2007. The studio is best known for its work on the Project Gotham series for Microsoft, but since being acquired has worked on Blur and a new James Bond game.
Staff at the studio are now on 90 days notice while their fate is considered.