Iron Man 2 Will Be The Last Release From SEGA's San Francisco Studio.

SEGA issued a statement to IndustryGamers offering condolences to those employees whom are now unemployed.

"Sega of America is sad to announce the closure of Sega Studios San Francisco. It is an immensely talented studio and we wish all the best to all of the staff in all their future endeavors. Moving forward, Sega will continue to pursue external development opportunities all over the world and will continue to grow the renowned Sega brand."

The studio's swansong - Iron Man 2 - will not be affected by the closure, and will release on May 4th in the US.