Team formerly known as Secret Level disbanded once Iron Man 2 development winds down
Sega has closed its San Francisco games development studio.
The outfit, previously known as Secret Level and acquired in 2006, winds down following the completion of the tie-in game for Iron Man 2.
Previously the studio had worked on the first Iron Man title and the failed attempt to revamp Golden Axe for current gen consoles.
Secret Level was formed in 1999 and when acquired by Sega was just one in a line of studios bought to grow the Japanese firm's Western slate of studios - which also includes the successful UK outfits Creative Assembly and Sports Interactive.
It was renamed to Sega Studios San Francisco as part of its integration into the business in recent years.
A statement from the publisher implies that the closure will not effect much of Sega's strategy going forward - it will still be publishing games from a mix of sources, both internal and external studios.
"Sega of America is sad to announce the closure of Sega Studios San Francisco," the statement from the publisher said.
"It is an immensely talented studio and we wish all the best to all of the staff in all their future endeavours.
"Moving forward, Sega will continue to pursue external development opportunities all over the world and will continue to grow the renowned Sega brand."