In a large $286 million fourth-quarter loss, Activision has cut hundreds of staff from some of its studios. Also, original Guitar Hero developer RedOctane, and Transformers: Revenge of the Fallen developers, Luxoflux have been closed.

After a fourth-quarter loss of $286 million, game publisher Activision has enacted some major cost-cutting measures. Hundreds of employees have been cut from Activision-owned developer and a few studios have been closed completely. According to reports in the LA Times and other outlets, about 50 people were let go from Guitar Hero developer/former Tony Hawk developer Neversoft, and more than half of Prototype developer's 180 employees were let go.
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