Sega Racing Studio Closes

Sega revealed that its Birmingham, UK-based development house Sega Racing Studio has closed its doors after just three years in operation.

The studio, which was founded in 2005, employed over 60 members working on multiple projects. The sole game to be developed and released by Sega Racing Studio was Sega Rally Revo (PC, PS3, X360, PSP), released in 2007.

"The decision is part of a review of Sega's Western Development Studios to ensure that each studio is a profitable entity in its own right," Sega wrote in an email to Next-Gen.

The company added, "Unfortunately the Sega Racing Studios 5 year plan would not result in a successful return for the Sega business moving forward. Sega would like to stress that there will be no changes within their other internal development studios."

The announcement follows a string of studio closures including Stormfront Studios, Castaway Entertainment, and Pseudo Interactive, all of which announced shutdowns this month.