Develop reports that according to a former employee, SEGA's fledgeling UK racing studio has been closed.
The studio, based in Solihull near Birmingham, was founded in 2005 with a number of UK racing game veterans involved. Their first and only game was a rejuvenation of the classic arcade game Sega Rally Championship, and released last September to generally average reviews and seemingly inadequate sales accompanied by heavy discounting at retail. I really liked it, and have just been getting back into it.
SRS supposedly had two projects underway, both of which have presumably been cancelled.
Update: Sega told Eurogamer, "Regrettably SEGA today announced that it is to commence consultation with a view to the unfortunate closure of the SEGA Racing Studio in Birmingham, UK.
"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 five 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."
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