Activision has confirmed rumours that it will be closing Underground Development, its Foster City studio.
The studio formerly known as Z-Axis was behind the Dave Mirra Freestyle BMX and Aggressive Inline series. It was acquired by Activision in May 2002 and was renamed Underground Development in February 2008.
"Activision is closing its Foster City development studio which had less than 45 employees," an Activision spokesperson told GamesIndustry.biz.
"We are currently making efforts to find opportunities for all employees at other Activision studios."
Underground Development most recently handled the PlayStation 3 version of Quake Wars which will be released on May 27 in North America and on May 30 in Europe and Australia. Nerve Software developed the Xbox 360 version.
Activision said that it expects the development studio to be closed by the end of May.