*UPDATE* Activision has posted their comments on the situation, and it looks like the rumors were true;

"Over the past three years since our purchase of Bizarre Creations, the fundamentals of the racing genre have changed significantly. Although we made a substantial investment in creating a new IP, Blur, it did not find a commercial audience. Bizarre is a very talented team of developers, however, because of the broader economic factors impacting the market, we are exploring our options regarding the future of the studio, including a potential sale of the business."

Just when the state of the world’s economy looked to be on the rebound, we get another reminder that we’re far from out of the woods yet.  Giant Bomb and VG247 are reporting that Activision is closing Bizarre Creations, the studio responsible for Blur, the Club, Geometry Wars, and the Project Gotham Racing series.

According to Giant Bomb’s sources, the UK-based studio is undergoing “90-day consultation period, statutory redundancy,” a sort of mandatory 90 day notice that all British companies must undergo before shuttering their doors.  VG247 is reporting that when all is said and done, over 200 staffers will be let go.  Activision has yet to confirm any of this, but with multiple sources corroborating each other’s rumors, it’s looking more and more likely that Bizarre Creations will be no more.

Bizarre was founded in 1994, and acquired by Activision in 2007.