Sony has issued an official statement confirming the closure of Studio Liverpool.
"As part of SCE Worldwide Studios, we do regular reviews to ensure that the resources we have can create and produce high quality, innovative and commercially viable projects in an increasingly competitive market place," it reads.
"As part of this process, we have reviewed and assessed all current and planned projects for the short and medium term and have decided to make some changes to our European Studios.
"It has been decided that Liverpool Studio should be closed. Liverpool Studio has been an important part of SCE Worldwide Studios since the outset of PlayStation, and have contributed greatly to PlayStation over the years. Everyone connected with Liverpool Studio, past and present, can be very proud of their achievements.
"However, 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. Our Liverpool Facility will continue to operate, housing a number of other vital WWS!E and SCEE Departments.
"This should not take anything away from the great work WWS are doing and the incredible games and services that we have made, and continue to make."
Formula One was a series of computer and video games originally created by Psygnosis and more recently Studio Liverpool. It takes its name from the popular car racing series of the same name. Since 2001, the Formula One series has been made by Studio Liverpool (an internal SCEE game studio) with the FOA Official License. Sony had held an exclusive license to make Formula One games from 2003 until 2007, releasing a new title every year which includes improvements to the graphics engine as well as an updated and complete F1 grid showing the latest liveries, chassis and drivers. The series covered every year from 1995 to 2006, with the exception of the 1996 season.