Sony axing Liverpool game studio, ends Psygnosis 28year history

Sony has confirmed that it's shuttering Studio Liverpool, more famously known as Psygnosis. The publisher was founded in 1984 and is responsible for a legion of best-selling titles including Lemmings, Colony Wars, Destruction Derby, Wipeout and the Formula One games. In a statement, the company said that after a review of its "commercially viable" projects, it's focusing on projects in other parts of the business -- after slashing the studio's remit in a cost-cutting exercise in 2010. The facility is also the location of the company's European Quality Assurance team, which will reportedly remain in operation.

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"As part of SCE Worldwide Studios, we do regular reviews to ensure that the resources we have can create and produce high quality, innovative and commercially viable projects in an increasingly competitive market place. As part of this process, we have reviewed and assessed all current and planned projects for the short and medium term and have decided to make some changes to our European Studios.

"It has been decided that Liverpool Studio should be closed. Liverpool Studio has been an important part of SCE Worldwide Studios since the outset of PlayStation, and have contributed greatly to PlayStation over the years. Everyone connected with Liverpool Studio, past and present, can be very proud of their achievements.

"However, it was felt that by focusing our investment plans on other Studios that are currently working on exciting new projects, we would be in a stronger position to offer the best possible content for our consumers.

"Our Liverpool Facility will continue to operate, housing a number of other vital WWS and SCEE Departments.

This should not take anything away from the great work WWS are doing and the incredible games and services that we have made, and continue to make, both for this coming year and further in the future."