Activision has confirmed that the studio behind the Playstation 3 version of Enemy Territories: Quake Wars, Underground Development, will be closing down. The studio was known as Z-Axis and was behind such sports games as Dave Mirra Freestyle BMX and the Aggressive Inline Series. It was acquired by Activision in May 2002 and was renamed Underground Development in February of this year.

"Activision is closing its Foster City development studio which had less than 45 employees," an Activision spokesperson told GamesIndustry.biz.

"We are currently making efforts to find opportunities for all employees at other Activision studios."

Quake Wars will be released in America on May 27 with the European version coming May 30. Activision expects the studio to be closed when the game ships.