Activision closes two studios, relocates staff

Activision has shut down two of its studios, Underground Development and RedOctane, the company has confirmed following rumors of their closure.

Underground Development, responsible for the PlayStation 3 version of Enemy Territory: Quake Wars as well as the recent Guitar Hero: Van Halen, has been shut down completely while the staff responsible for the peripherals at the company’s main Guitar Hero creator RedOctane will be reporting to newly-appointed Guitar Hero boss David Haddad.

“As part of our overall strategy to release fewer skus for Guitar Hero in 2010 we are closing the Underground studios and relocating RedOctane to our Santa Monica headquarters under the leadership of David Haddad,” Activision said of the closures in a statement.

During a recent earnings call, Activision said it’s planning just two “major” releases in the music genre this year — a new Guitar Hero and DJ Hero 2.