Sony is in the process of closing down MAG and SOCOM developer Zipper Interactive, according to Kotaku sources.

Sony has refused to comment, but Kotaku claims to have heard chatter about mass layoffs and a project cancellation at Zipper. The scale of the layoffs suggests the studio will soon be shut down, adds Kotaku.

Zipper has seen great success for Sony, especially on PS2 with the SOCOM franchise, but PS3 titles MAG and SOCOM 4 failed to live up to hype.

Unit 13, the PS Vita third-person action title, may turn out to be the studio's final game.