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SEGA has confirmed to Next-Gen that SEGA Racing Studio has closed, the publisher citing a lack of profitability for the decision.
The news of the studio’s closure was first reported by trade website Develop and was later confirmed by SEGA to Next-Gen.
“Regrettably Sega today announced that it is to commence consultation regarding the unfortunate closure of the Sega Racing Studio in Birmingham, UK,” the company stated.
“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 5 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.”
The Birmingham-based studio was founded in 2005 and its only output was the 2007 arcade racer SEGA Rally.
