It’s always sad to see a developer go. Gamers can forget it sometimes, but ultimately, videogames are a business, just like films and other media. So I’m sad to bring you this news: Sega Racing Studio has officially gone out of business, according to Next Generation. The development house, which was founded in 2005, had only released one game so far: Sega Rally Revo (see screenshot above), which came out in 2007 for the PS3 and 360.

The studio had over 60 employees, and their future is now uncertain — Sega hasn’t made it clear whether they’ll be absorbed into or transferred to other Sega studios, or simply laid off. However, they did explain the reasons behind the closure:

The decision is part of a review of Sega’s Western Development Studios to ensure that each studio is a profitable entity in its own right, and unfortunately the Sega Racing Studio’s 5 year plan would not result in a successful return for the Sega business moving forward. Sega would like to stress that there will be no changes within their other internal development studios.

Sega Rally Revo was a pretty well-reviewed game; Metacritic lists a Metascore of 77 for the Xbox 360 version of the game. However, it apparently didn’t sell particularly well, which is probably another cause for the closure. Here’s hoping the members of the Sega Racing Studio team land on their feet.