Sega's UK-based Racing Studio has apparently closed its doors.
The news comes from Develop magazine citing a former staff member of the Solihull-based developer. Sega UK representatives were not available for comment at the time of publication.
The studio was formed in 2005, fronted by Guy Wilday formerly of Codemasters, and released Sega Rally - Sega Rally REVO in the US - for the Xbox 360, PS3, PSP and PC last year.
Sega Racing Studio reportedly employed over 60 people working on Rally and new IP. It is unclear whether those staffers are being made redundant or whether they will be offered positions at other Sega UK studios.
With the news coming after the close of the UK workday Tuesday, we will follow up the story and bring you additional information as it becomes available.