Sony has closed WipEout developer Studio Liverpool.

The firm made their decision based on reviewing and assessing their existing and planned projects, which have all been canceled. Instead, Sony will be focusing its investments on other studios working on "exciting new projects". The full statement reads:

"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. Our Liverpool Facility will continue to operate, housing a number of other vital WWS and SCEE Departments.

"This should not take anything away from the great work WWS are doing and the incredible games and services that we have made, and continue to make."

Studio Liverpool began in 1984 when it was then known as Psygnosis. Sony bought the developer in 1993, which then saw the inception of the WipEout franchise with the original being released in 1995. They went on to create Colony Wars, Formula One titles, Destruction Derby and G-Police. The studio's last title was WipEout 2048 for the PlayStation Vita.

Meanwhile, sources have suggested that the now-defunct developer was working on WipEout for the PlayStation 4, as well as a Splinter Cell style game for the next-gen platform.