In yet another fall from grace, Sega reported that its had to close the Sega Racing Studio based in the UK after only 3 years and 1 game released from its doors. That game was Sega Rally Revo and while it was well received, the sales were far from stellar.
A rep had the following statement ready, "The decision is part of a review of Sega's Western Development Studios to ensure
that each studio is a profitable entity in its own right, and unfortunately the
Sega Racing Studio’s 5 year plan would not result in a successful return for the
Sega business moving forward. Sega would like to stress that there will be no
changes within their other internal development studios."