Well, this blows.
Beginning with a NeoGAF thread and followed up by Giant Bomb and VG247, comes rumor that Activision is closing Bizarre Creations, the studio behind the just-released Bond title Bloodstone. It was responsible for Blur, The Club, the Project Gotham Racing series, and downloadable favorite Geometry Wars. The studio, founded in 1994, was acquired by Activision just over three years ago.
Giant Bomb's source says that Bizzarre Creations will undergo a "90-day consultation period, statutory redundancy." That sounds ... bad. According to the VG247 report, the cuts would mean a loss of over 200 staffers. We'll let you know as soon as we hear anything official. Stay tuned.
[Update: Getting some context for the above quote: Apparently Bizarre isn't closed yet; the 90-day period is required in the UK (where Bizarre is located) before shuttering a business. That 90-day period also serves as a 90-day notice to employees that their company is likely to be closed/sold/downsized/etc. – an official statement should be along shortly.]
[Update 2 2:01pm: Activision's statement: "Over the past three years since our purchase of Bizarre Creations, the fundamentals of the racing genre have changed significantly. 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."]
[Update 3 5:55pm: Activision additionally confirmed the closure of Budcat Creations, as well as redundancies in its California-based quality assurance team.]