Creators of Project Gotham Racing and Geometry Wars (under Microsoft), and Blur and 007: Blood Stone under Activision, are rumoured to have been shuttered. That would mean 200 people have lost their jobs. This is probably the result of the poor sales of Blur (ironically, no fault of the game but rather the context of its release) and poor critical response to Blood Stone.

What would be ironic is if Microsoft hires back the Bizzare Creations staff, as they mentioned they were looking for developers for PGR5. It was rumoured that Forza creators Turn 10 were working on PGR5.

It’s worth it to note that it’d be curious to see what happens to Bungie Software, having just signed up with Activision, if their first undisclosed project for the publisher fails to meet expectations.

Since we’re on the rumour mill: word on the web is that Gears of War 3 has been pushed back so Microsoft can force some Kinect support in there, probably to try and grab some of that fictional hardcore market.

Ubisoft, due to poor sales of RUSE and HAWX 2, have shuttered various undisclosed projects. Hopefully the project from Another World creator Eric Chahi From Dust has survived, as well as Beyond Good & Evil 2.