Sega Studios San Francisco have today been shuttered, we hear, the publishing giant closing the division and hinting at plans to use more external talent instead.

The studio was responsible for Golden Axe: Beast Rider, as well as Iron Man 2, and it was believed the latter was completed prior to shutting down the studio.

Staff will be lost as a result of the we believe, and Iron Man 2 will be with us soon - for better or worse. We'll keep you posted on Sega, as they vow to 'peruse external opportunities'.

Thanks IndustryGamers.

By Luke Guttridge