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Sony PlayStation is to axe its Liverpool development studio - an operation that traces its roots back to the very beginnings of computer games.
Sony PS European chief Michael Denny, visited the studios in Wavertree, Liverpool, this morning (Weds) to deliver the bad news to its 100-strong workforce.
The company says it will be working with members of its Liverpool games development team in a bid to redeployment to other parts of the business.
Only the games development team will be affected by the closure at the Wavertree Technology Park where other business teams will continue to function.
In a statement, Sony PlayStation Europe said: "It has been decided that Liverpool Studio should be closed.
"The Liverpool Studio has been an important part of SCE Worldwide Studios since the outset of PlayStation, and has contributed greatly to PlayStation over the years.
"Everyone connected with Liverpool Studio, past and present, can be very proud of their achievements."
Sony Liverpool gone through two previous restructuring exercises, the first in 2010 and the second in March last year when staffing levels were reduced.
Sony Liverpool Studio began in 1984 as "Psygnosis" and was among the pioneers in computer gaming for the ZX Spectrum and Commodore computers.
Sony acquired the Psygnosis 1993 and it went on to create key PlayStation games such as Wipeout, G-Police, Formula One and Colony Wars.
Sony said: "It was felt that by focusing our investment plans on other Studios that are currently working on exciting new projects, we would be in a stronger position to offer the best possible content for our consumers."
Liverpool Labour MP Luciana Berger said she has been assured that the number of jobs to be lost will be limited to 60, with the closure of the Sony Liverpool Studio.
Wavertree MP Ms Berger, who is Chairman of the of the Commons all-party committee on the computers and video games industry, expressed regret that she had not been informed by Sony of the job losses in her constituency until after they were announced.
Ms Berger said: "I've spoken to Sony and I share their disappointment that jobs are being lost in Liverpool. I was not told in advance.
"Although it would have been helpful to have been informed it is the future that is of real concern.
"I've been assured that the number of people affected will be limited to 60 of the 400 who work for Sony across their Liverpool site.
"Sony say it will not affect the other 340 and that they will do their utmost to offer redeployment to those who are affected.
"I'm determined to hold them to account on that undertaking and will be working hard to ensure that they stick to that promise.
"Naturally, I'm very concerned about the loss of high quality jobs in my constituency where computing and computer games are an important industry.
"I've received a direct reassurance from Sony that they are not giving-up or abandoning Liverpool since, together with their site in Runcorn, they say it is very important to them.
"We do have a strong video games sector in the region I will be keen to support the maintenance and growth of the jobs that it supports.
"I've encouraged the Government to introduce tax reliefs for the video games industry and they have made promises to examine that, but we are still awaiting action.
"I believe it's absolutely crucial to have these tax breaks in order to keep companies like Sony in the UK and retain the wealth of talent that we have.
"While other countries like Canada offer tax relief to the gaming industry and the UK does not do so, we will remain at a disadvantage."
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