Activision has issued a statement earlier that it will close down its Foster City studio, Underground Development. The closure process has begun and will be completed by the end of May.

"Activision is closing its Foster City development studio which has less than 45 employees," said the company through a spokesperson. The rep further explained that efforts are being taken to help find other opportunities for employees who will be affected by the closure.

Underground Development was known as Z-Axis prior to its 2002 acquisition by the publisher. It's been recognized for its work on extreme sports sims such as the Aggressive Inline and Dave Mirra franchises. Its most recent project was the PlayStation 3 version of Enemy Territory: Quake Wars which is due out on May 27 in the US and on May 30 in Europe.