Will focus on digital and mobile games under the new nStigate Games brand.
Successful PlayStation franchise Resistance, which spawned three Insomniac-developed shooters on PS3 plus two handheld games, could be over.
Ubisoft maintains its hold at the top of the UK video games chart with Ghost Recon: Future Soldier - recording a respectable 35 per cent drop week on week.
A look ahead to this week's new releases, which include Max Payne 3 on PC and Resistance Burning Skies on PS Vita.
Resistance: Burning Skies will be released for PlayStation Vita on May 30, 2012, Sony Computer Entertainment has announced. Sony says the game will be the world's first portable dual-analogue FPS.
Insomniac has confirmed it won't be making another Resistance game, leaving the future of the franchise on PS3 in doubt.
A future instalment in the primary Resistance series could well end up in the hands of a studio other than Insomniac Games, creative director Marcus Smith has revealed.
Sony is looking to existing PlayStation 3 developers to get the most out of the PlayStation Vita, according to Nihilistic's Rob Heubner.
We go hands-on with the first FPS to hit the PlayStation Vita and early signs are very good.
Sony has showcased Resistance Burning Skies for the PlayStation Vita - a brand new game in the Resistance universe set before the events of Resistance 2.