It's important to realize that studios like these close for a reason.

It sucks... and I hope some of my favorite Sony studios don't close, but it's not okay to say "who cares about financials" or "why do you worry about financials, just enjoy the games". I've never agreed with that, never will, and that's why I'm a member of vgchartz, because I realize how these things matter.

For 1) this is a sales site, and for 2) the closing of this studio is likely the result of poor financials.

I agree with Sales, and I completely disagree that sales and financials don't matter.

For those upset, this is on topic. I wouldn't want this to happen with my favorite studios, so that's another reason why this site is helpful, to understand the impact of certain financials in the games industry.

Anyways, my sympathies to the fans, I know this is a very loved franchise, here's to hoping it stays alive regardless. Still, I don't consider that a reason to flame anyone. Control yourselves people.

This will have been a strategic decision that will have been thought about for quite some time. This move is likely to try and consolidate and increase efficieny - it's not some quickfire response to SCE's recent loss. Especially considering that the company is keeping the Liverpool building, retaining some of the studio's workforce and likely incurring some short-term restructuring costs.

Businesses are always looking to increase efficiency, reduce costs etc.  

And people also need to understand that the bulk of Sony's financial misery in recent times has come from its TV divison. Sure, overall Sony products are less popular and less competitive, but for Sony to really tackle its losses it needs to get its TV business sorted - not shut down the odd game studio.

Another sad day for the UK games industry, but in all honesty the writing was on the wall when they merged with the Warrington studios / Evolution. They're a victim of the industries push to AAA games, and as a more niche mid-tier publisher they simply couldn't carve out a market to make them profitable and sustainable. Sony (and the rest of the entire industry) either want AAA mega-hits like Uncharted and God of War, or low-cost indie darlings like Journey and The Unfinished Swan, what Liverpool produced was between these two are there just isn't a market for that sort of developement currently. Same fate happened to Zipper - games like Socom just can't deliver on either end of the spectrum and go forgotten.

I reckon we'll see Evolution studios gone in the next few years too, Sony seem keen to give them another shot after Apocalypse bombed but unless whatever they make next is a hit they'll be gone. On the otherhand Media Molecule sprung up out of nowhere and created one of the Sony's premier franchises, and while somewhat loathed Wonderbook is seemingly a key part of Sony's line up this year, so for now they've still put a lot on UK developement. For now.

@1st para, how do you know?

@last para, on TV losses. You don't know that. It could be that they need to do both, because the losses are just that considerable. I.e. they would need the TV business sorted out, and they would also need to shut down the game studio. The performance of one division affects that of another within Sony, it is a system of many interdependent parts, from a financial PoV. PS would not exist without the success of the Walkman for example, and the same can be said about the failures. Just common sense, right?

It was downsized and had projects stopped once already two years ago.  Like he says, the decision to stop operations there altogether has probably been a long time coming.

1) Common sense. Big corporations do not shut down popular assets of their business on a whim. They will have though about this quite considerably, justified the decision etc.

2) Sony's financial statements (which are audited so that they are reasonably fair, true, accurate) let us know that the big losses are coming from the TV business. SCE has made profit not too long ago times and it's recent loss was probably primarily due to falling demand across the gaming industry and lower than expected Vita sales - not because it has too many studios.

And of course Sony's divisions affect each other, but big TV losses do not directly lead to one game studio getting shut down. Also consider that this move will no doubt cost them more in the short term... 

Trust me, this isn't a quick-fix to help the financials. 

@1. Our common sense agrees, obviously. The reason is what I was asking you about, not the urgency of the cause (which we agree on...).

I was asking you, how do you know it's due to restructure and not due to lack of resources to sustain the studio due to other divisions, or even both?????

@2. Where did I ever say big TV losses directly lead to one game studio shutting down? I am just saying that it very clearly appears that Sony is in a difficult financial situation for whatever reason (and I'm aware it's not SCE for your info), and as a result they need to either restructure or close studios.

Denial is a bad thing, and the closing of studios is as well.

I'm utterly disgusted by this Sony decision. Psygnosis just paid for the mistake that Sony's marketing division made when designing and advertising and selling the Vita. Studio liverpool was dumb to have tried to support their parent company and should have released wipeout 2048 on the PS3.
Sony only has 3 good studios in my opinion at this point and they just ditched one of them. I didnt care if they closed any of them other studios. Heck, even if they closed naughty dog or studio santa monica i wouldnt have cared, but studio liverpool has some of my favorite IP's of all time and psygnosis was an awesome developer.

When will these people learn not to sell out to the big companies. I dont even know how this is helpful to the big companies themselves. EA turning westwood and C&C to crap, activision milking and turning franchises and developers to crap, microsoft turning Rare to the crapper. Its really really disgusting. Quite honestly it pisses me off and makes me not want to buy their products anymore. Maybe i should just go for nintendo next gen since they seem to be the only ones not hellbent on disappointing their fanbase.

Damn, that stealth game had me intrigued. Hope it'll be handled by another team. And Wipeout too.

But one has to wonder what the team was doing for these past few years. Since the PSN Wipeout, their only other game was the Vita Wipeout. I can't say I'm too surprised.

I also agree that sales matter in the big picture, but using the closing down of a studio in order to fuel your console war propaganda (like Sales did) and to also use it to rub salt into the Sony fans' wounds is uncalled for.  I guess that I'm pretty much agreeing with what you are saying Happy D, but I just wanted to point out how what Sales did was pretty lousy.