"When the new management came in, they tried to sell half the studio and keep half, and they apparently had one buyer interested, but that fell through recently, leading to the situation we're in now," Eurogamer's source revealed.
Despite the cuts, a portion of Black Rock has been left in tact while they wrap up development of a "promising" but "risky" title.
It's been a bad year for arcade racers, with the closure of Bizarre Creations a few months earlier. The genre is slowly starting to die, which is a great disappointment for us. Arcade racers have always represented the very heart of our favourite gaming experiences, but with shooters flooding the market-place there just doesn't seem to be room for good racing games anymore.