Another Studio is buried 6 feet underground.

The studio behind Sega Rally Revo has been shutdown by none other than Sega itself.Founded in 2005 and led by former Codemasters studio director Guy Wilday, Sega Racing Studio has been credited on only one project, 2007's Sega Rally Revo for the Xbox 360, PlayStation 3, and PC. 

The shutdown was to happen immediatly and Sega has yet to comment on the shutdown. The only project that is available from the Studio is Sega Rally Revo only sold about 44,000 so far. This is probably why Sega shut them down because they failed to make a profit.

I played Sega Rally Revo and have to say that the graphics where awesome but the Controls sucked. They where too tight and too loose at the same time. I would think many people though the same since it failed to sell. Maybe if the game would have been worked on a little bit longer the game would have sold decently.

It is unknown whether or not sega is going to lay off the employees or transfer them to different projects. One thing is for sure. When a studio shuts down, no body wins.

Source