The word-of-mouth we reported on last week was proven accurate this morning, when Sega confirmed that it has shut down Sega Studios San Francisco (formerly Secret Level), developer of Iron Man and Golden Axe: Beast Rider. An unnamed Sega representative issued a statement to IndustryGamers, offering condolences to the recently unemployed developers, while promising to "continue to pursue external development opportunities all over the world," a fact we're sure the aforementioned jobless truly appreciate.

The only unknown in this scenario is the fate of the studio's swan song, the video game adaptation of Iron Man 2. Rumor has it that the game was finished, but Sega's yet to issue a statement on its completion. We've contacted Sega to find out the game's status, and to find out how many naughty Easter eggs its disgruntled developers embedded within it after being informed their jobs were forfeit.

Update: A Sega representative has confirmed that Iron Man 2's May 4 release date hasn't been affected by the studio's closure.

This article was originally published on Joystiq.