Despite having had a good festive season, publisher could be considering cutting large portions of their workforce, or even closing their operations stateside entirely.

According to an insider (speaking to IGN) Codemasters received significant funding for their US operations but were simply unable to make the right kinds of games or attract the best developers.

Apparently, Overlord and didn't sell as well in the US as hoped, forcing Codies to shift focus towards internal in Europe.

Significant are said to be afoot, with the US operation closing completely sooner or later.

For their part Codemasters deny the closure, stating: "Codemasters' office in Burbank CA remains operational under the management of Bill West and we look forward to a focussed relationship with our distribution and marketing partners going forward."

By Luke Guttridge