Activision had discussed that they might be selling or shutting down the Radical Entertainment game studio. They later announced that they would be axing 90 jobs, around 86% of the total staff count. The lucky 15 people left get to stay on and move elsewhere to work on other Activision titles.
They said they are not selling Radical, who are known for the Prototype and Crash Bandicoot series of games. Apparently sales of Prototype 2 were less than impressive and is the reason the parent company have decided to downsize the studio.
Radical were previously owned by Vivendi, who then became part of the huge Activision group in 2008. Activision remains a division of Vivendi however there are rumours that they are wanting to spin off their entertainment assets from the struggling phone business.
Activision currently employ 7,400 people. They said in a statement “Having explored a wide range of options, Activision believes that the only option is a significant reduction in staff.”
Kitguru says: A rather unpleasant blow for the Radical team, but it shows the pressure on a development studio. When sales don't match expectations someone has to pay.