Microsoft closes studio in Victoria, Canada (update)

Microsoft's game design studio in Victoria, Canada, has closed down, according to the Times Colonist.

In a statement that Microsoft sent to the Times Colonist, the company said the studio closure was part of a plan to consolidate its resources.

"This was not an easy decision, but one guided by our desire to centralize development in our Vancouver studios," the statement reads. "We are working closely with all employees affected by this change to identify open positions in other studios, and we remain committed to doing business in British Columbia."

Microsoft Studios Victoria opened in early 2012 and the location was chosen in part because it sat halfway between Microsoft's headquarters in Seattle and Vancouver. When the studio first launched, it reported plans to hire between 50-60 people, with the intention of expanding to 150 employees in its first three years. It is not yet known how many employees have been affected by the studio's closure.

The studio focused on game design and was working on an "unannounced core project" at the time of the closure.

We have reached out to Microsoft for comment.

UPDATE: A Microsoft spokesperson told Polygon that none of the projects Microsoft Studios Victoria was working on will be affected by the studio's closure. "We did not cancel any projects rather we centralized our development efforts in BC to our Vancouver offices," the spokesperson said. Microsoft did not confirm what projects the studio was working on.