UK developer FreeStyleGames is to be restructured, Activision has confirmed to MCV.
The studio, which most recently developed Guitar Hero Live, will continue to be a "great partner" for Activision, the company says, but will be restructured "to better align the studio resources with future business needs".
It isn't yet clear whether the studio will face redundancies, although Activision says that it is working with the developer "to explore options to rebalance staff within Activision Blizzard and its related organisations".
"Activision and FreeStyleGames leadership have been considering a range of future options for the studio, and have been consulting with staff to explore all alternatives," Activision told MCV.
"The collective team have now reached the end of a consultation exercise and the decision has been made to restructure FreeStyleGames to better align the studio resources with future business needs. We are working with the studio teams to explore options to rebalance staff within Activision Blizzard and its related organisations.
"The UK remains a key market for Activision Blizzard and FreeStyleGames continues to be a great partner. We thank all of the team for their continued passion, creativity and commitment."
FreeStyleGames was acquired by Activision in 2008 before going on to develop critically acclaimed rhythm action games DJ Hero and DJ Hero 2. Its latest release, Guitar Hero Live, released in October. A few months later Activision revealed that sales of the game had been "lower than expected".