Update: Activision has released a statement, in which it squares blame on Blur for not finding a “commercial audience.” The publisher is exploring several strategic moves, including “a potential sale of the business.” Look past the break for more.

Over the past three years since our purchase of Bizarre Creations, the fundamentals of the racing genre have changed significantly. Although we made a substantial investment in creating a new IP, Blur, it did not find a commercial audience. Bizarre is a very talented team of developers, however, because of the broader economic factors impacting the market, we are exploring our options regarding the future of the studio, including a potential sale of the business.

Activision has placed UK-based outfit Bizarre Creations on the chopping block, according to a report from industry trade site Develop. Sources close to the studio say that around 200 jobs have been axed.

While Activision has yet to confirm the closure, the news is spreading across Twitter like wildfire. A statement is likely imminent. Under the stewardship of Microsoft, Bizarre churned out hits like Project Gotham Racing and Geometry Wars.

Activision bought out the studio in 2007, tasking it with the creation of Blur and James Bond 007: Blood Stone, the latter of which received little to no media attention in lieu of Goldeneye 007’s Wii re-imaging.

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