Mike Gamble, Epic Games' UK boss has blamed "stupid acquisitions" for the closure of high profile UK studios.
Black Rock, the Brighton-based studio behind well received racing titles Pure and Split/Second, is to close after five years of Disney ownership.
The studio behind Split/Second is now rumoured to be developed an upcoming free-to-play title after a recruitment ad placed by the studio arrived online.
A group of ex-Black Rock staff, developers of the commercially doomed Split/Second, have formed ShortRound Games, a new development studio based in Brighton, UK.
Roundcube Entertainment formed by game director and senior producer of Disney's racing title.
100 staff at Brighton-based Black Rock Studio said to be facing redundancy.