THE future of one of the region’s biggest video games companies hangs in the balance today after its owner confirmed it could close.

After a flurry of rumours online about the future of Bizarre Creations in Speke, its US parent company, Activision Blizzard, confirmed it was “exploring options for the future of the studio” and its 200 staff.

Staff are reported to have been given 90 days notice of redundancy, though Activision hopes the studio can survive under new ownership.

The news follows the commercial failure of Bizarre’s “powered-up racing” game Blur, which was launched in May but recorded disappointing sales.

Bizarre is the second-biggest employer in Liverpool’s video game sector, which regeneration officials say is crucial to the city’s economy.

Liverpool hosts national video game conference Develop next week – and its organisers hope the event will attract potential buyers for Bizarre.

In a statement widely circulated online, Activision said: “Over the past three years since our purchase of Bizarre Creations, the fundamentals of the racing genre have changed significantly.

“Although we made a substantial investment in creating a new IP (intellectual property), Blur, it did not find a commercial audience.

“Bizarre is a very talented team of developers. However, because of the broader economic factors impacting the market, we are exploring our options regarding the future of the studio, including a potential sale of the business.”