Confirmed: Sega Racing Studio Closes

As "part of a review of Sega's Western Development Studios", says Sega

Sega's young UK-based racing studio is the latest development house to shut down in a string of 2008 closures, Sega has confirmed to Next-Gen.

Founded in 2005, Sega Racing Studio seemed like it would lead a revival of Sega's storied racing game history, but an anonymous former staffer has told trade site Develop that the studio has run out of gas, closing its doors after three years and one game.

The studio had over 60 members working on multiple projects, according to Develop. The only game that came out of the studio was 2007's well-reviewed Sega Rally Revo, although sales were lackluster.

The closure is effective "immediately," Develop said.

Sega confirmed the closure in an e-mail to Next-Gen on Tuesday. "Regrettably Sega today announced that it is to commence consultation regarding the unfortunate closure of the Sega Racing Studio in Birmingham, UK," the company stated.

"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, and unfortunately the Sega Racing Studio's 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 closure of Sega Racing Studio is the latest in a rash of studio shutdowns and "operation suspensions" that have happened this year. Iron Lore Entertainment, Stormfront Studios, Castaway Entertainment, Perpetual Entertainment and Pseudo Interactive all said this year that their businesses have either closed or that shutdown is imminent.

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