writes "Eurogamer is reporting that Sony has closed its subsidiary developer Studio Liverpool. Beginning its life in 1984 under the name Psygnosis, the development house has played an important role in the history of computer and video gaming, publishing classics such as the Lemmings series. Since its acquisition by Sony in 1993, the studio has been best known for its work on the WipEout franchise, which helped to establish the PlayStation console as a successful brand. Sony's statements indicate that it will seek to find positions for staff in its other development houses, but that some redundancies will be necessary."
Eurogamer posted an update, indicating that the studio was working on WipEout for the PS4