Sega has announced that once work wraps up on Iron Man 2, the studio formerly known as Secret Level will be shut down.
The developer was acquired in 2006, and previously worked on the original Iron Man
movie tie-in and an attempted revamp of the Golden Axe
Now known as Sega Studios San Francisco, the studio is being closed as the publisher seeks "external development opportunities all over the world" to "grow the renowned Sega brand." A statement from Sega noted that it will maintain a mixture of both internal and external development sources.
"Sega of America is sad to announce the closure of Sega Studios San Francisco. It is an immensely talented studio and we wish all the best to all of the staff in all their future endeavours," read the statement.
And it was only the other day we saw the developer getting all excited
about its upcoming Iron Man 2 game. A shame.