A memo from Activision Publishing CEO Eric Hirshberg, obtained by Giant Bomb, states that the two studios are to be merged, under the name Infinity Ward. Last year, Neversoft worked on Call of Duty: Ghosts with Infinity Ward.
"As you know, Neversoft and Infinity Ward teamed up for the development of Call of Duty: Ghosts," wrote Hirshberg in the memo. "Through that process, it became clear that the two studios have very complementary skill sets. Between these two excellent studios, it seemed like a single 'super-studio' could emerge."
Neversoft was formed in 1994 and is best known for its work on the Tony Hawk and Guitar Hero franchises. Studio head Joel Jewett and studio director Scott Pease are quitting the company, according to the memo. Activision worldwide studio head Dave Stohl is taking the lead at Infinity Ward.
"We are merging these two very talented teams and obviously had to choose a name for the combined studio," added Hirshberg. "Since the Infinity Ward brand is indelibly tied to the Call of Duty franchise, it is the sensible choice. While it will be strange to not see the Neversoft logo on future games, the important things, which are the Neversoft team's talent, creativity, professionalism and commitment to creative excellence, all remain unchanged as part of this new chapter."
Earlier this week Activision announced this year's Call of Duty: Advanced Warfare, which is being developed by Sledgehammer Games.
Polygon has contacted Activision for comment.
Update: Infinity Ward has since commented on the merger, taking to the company's official Twitter page to write: "We're thrilled about our merger with @Neversoft! The entire team is excited about the future."