Max Payne 3 developer Rockstar Vancouver is to close, Rockstar Games has announced.

The studio, which was founded as Barking Dog Studios and acquired by Rockstar Games in 2002, currently staffs 35 employees. All will be given the opportunity to join Rockstar Toronto or take positions at other Rockstar studios.

In addition to Max Payne 3, the studio developed PS2 game Bully and its Xbox 360 update Bully: Scholarship Edition.

Rockstar Toronto will also be expanded to help house the Vancouver staff, Rockstar announced, starting with a bigger custom-built facility based in Oakville, Ontario.

"Expanding Rockstar Toronto and bringing our Canadian development talent together under one roof underscores our commitment to building world-class teams that can make the kind of groundbreaking entertainment experiences Rockstar Games is known for," said Jennifer Kolbe, vice president of Publishing and Operations for Rockstar Games.

"We believe a single Canadian team will make for a powerful creative force on future projects. We plan to add more than 50 new positions to our combined Canadian team, and are pleased to be entering into this strategic partnership with the Ontario government."

Ontario politician Brad Duguid added:

"Rockstar Games' decision to expand its Toronto studio demonstrates the confidence in Ontario's leading-edge digital gaming industry. By providing financial support and tax incentives to help companies grow, we maximise Ontario's competitiveness in the global economy and support job creation."