Sony has confirmed it plans to shut down Guerrilla Games Cambridge, the veteran studio behind PlayStation VR launch title RIGS: Mechanized Combat League, and lay off all employees.

The studio has existed in various forms for over 25 years, beginning as part of James Pond creator Millennium, and subsequently working on titles such as MediEvil and Primal for Sony as Studio Cambridge, with the shift to the Guerrilla name coming in 2012.

The console maker confirmed the news to GamesIndustry.biz, explaining the decision was made following a review of all current PlayStation resources and projects.

Sony described the move a "regrettable," but insists it's one that's "necessary" if it hopes to meet its current strategic objectives.

"Whilst we accept that this decision will mean that we risk losing high caliber staff, by focusing on other studios with exciting new projects in development we believe we will be in a stronger position going forward," reads a company statement.

"This decision should not take anything away from the incredible games and services that Guerrilla Cambridge has delivered."

Sony will try to reallocate those affected by the closure onto other projects. Developers from outside the PlayStation family have also lent their support, highlighting a huge list of job openings through Twitter.

Guerrilla Games Amsterdam, currently in charge of Horizon: Zero Dawn and the Killzone franchise, hasn't been affected by the closure.