Neversoft staff have celebrated the studio's final day by setting fire to a huge replica of the developer's logo.
Each member of staff was also said to have been offered a Bowie knife engraved with the studio's logo as a parting gift from co-founder Joel Jewett.
It was revealed back in May that Neversoft was to merge with Call of Duty creators Infinity Ward to create a single "super-studio". The two teams previously worked together on Call of Duty: Ghosts, with Neversoft developing the game's co-op Extinction mode.
Neversoft was established in 1994 and, prior to working on Call of Duty, developed the Tony Hawk series, multiple Guitar Hero titles and wild west shooter Gun.
Precise details on Neversoft's merger with Infinity Ward have yet to be formally disclosed by Activision, but both Joel Jewett and studio director Scott Pease are reported to be leaving the company.