Sony Liverpool was reportedly working on two PlayStation 4 launch games prior to today's announcement of plans to close the studio.
According to Eurogamer sources, one was a "dramatically different" WipEout game said to have been in development for between 12 and 18 months, while the other started life as a gangster title before evolving into a Splinter Cell-style experience which employed motion capture tech similar to Depth Analysis' MotionScan, which was popularised by LA Noire.
Sony Liverpool Studio is to close as part of a wider reorganisation of the platform holder's Worldwide Studios group, the company confirmed to CVG today.
Formed in 1984 as Psygnosis, the studio was acquired by Sony in 1993. It went on to create scores of games including WipEout and Destruction Derby.
Speaking in June, Sony Computer Entertainment boss Andrew House said that the company is not prepared to show PlayStation 4 until the system can demonstrate 'a significant leap' in technology.