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Well you don't need 120 people to make monthly DLC.

Sounds like Sony is not confident in making enough money from a sequel or another Motorstorm to keep all of the relatively expensive UK staff around. 60 people is still plenty to make a new game anyway, since they already have a great engine for ps4. Maybe another year 2 season pass first, then a new game.

Dunno if they'll go for another Motorstorm after the failure of Apocalypse. Maybe test the waters first with a remaster. A 1080p60 combined version of the first 2 that doesn't compromise on visuals in 4 player splitscreen would be fun.
A whole new one would be better, but looking at the sales of racing games nowadays it's a risk. Yet, who knows. DriveClub proves there are plenty people that like racing without a story or other nonsense bolted on. Going back to the basics of the first 2 Motorstorms should get that series back on track.