Following the lead of Guitar Hero, Activision has confirmed that this year's in-development DJ Hero title has been cancelled, and the DJ Hero business disbanded.
A statement reads on the official DJ Hero website:
"Due to continued declines in the music genre, the company will disband Activision Publishing's DJ Hero business unit and discontinue development on its DJ Hero game for 2011.These decisions are based on the desire to focus on the greatest opportunities that the company currently has to create the world's best interactive entertainment experiences."
As you can see, Activision puts the cancellations down to a decline in music game sales.
Activision Publishing CEO Eric Hirshberg said in an earnings call last night: "Given the considerable licensing and manufacturing costs associated with this genre, we simply cannot make these games profitably based on current economics and demand.
"Instead, what we'll do is focus our time and energies on marketing and supporting our strong catalog of titles and downloadable content, especially to new consumers, as the install base for hardware continues to grow."
Rumours have started circulating that the UK studio behind DJ Hero will see significant layoffs, just a month after confirmation of the closure of Project Gotham studio Bizarre.
FreeStyleGames thanked fans for their support via Twitter, posting: "Thank you all for your messages of support. They do mean a lot to us. It's early days and we will keep you posted."