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Confirmed in this article

“As part of SCE Worldwide Studios, we do regular reviews to ensure that the resources we have can create and produce high quality, innovative and commercially viable projects in an increasingly competitive market place. As part of this process, we have reviewed and assessed all current and planned projects for the short and medium term and have decided to make some changes to our European Studios.

It has been decided that Liverpool Studio should be closed. Liverpool Studio has been an important part of SCE Worldwide Studios since the outset of PlayStation, and have contributed greatly to PlayStation over the years. Everyone connected with Liverpool Studio, past and present, can be very proud of their achievements.

However, it was felt that by focusing our investment plans on other Studios that are currently working on exciting new projects, we would be in a stronger position to offer the best possible content for our consumers.”

Psygnosis (their name before they became Studio Liverpool) will be hugely missed by myself and were responsible for some of the greatest games ever created.

This is a very sad day for the games industry. We have lost a legendary studio today, all thanks to Sony’s poor direction and mismanagement.

Studio Liverpool’s last game was Wipeout 2048 on PS Vita and it was the worst Wipeout game they’ve ever made, so I suspect big changes have been secretly happening behind the scenes for a few months now.

My sympathies go out to all the folk who have lost their jobs.