The Iowa-based studio, which had worked on ports of Guitar Hero games for PlayStation 2 and Wii, has had its 88 workers made redundant and will shut its doors soon.
"We continue to streamline our music development resources to ensure that they are aligned against our slate and strategic goals,” read a statement, according to VG247.
“As a result, we are implementing a targeted reduction in jobs in our Quality Assurance team in California and closing our Budcat studio in Iowa. Budcat has been a great partner to Activision and has created a lasting impact on the Guitar Hero franchise.
"We are working to redirect those employees that are impacted to other parts of the company where possible, as well as offering them outplacement counselling services.”
Yesterday it was revealed that Activision was to consider selling or closing Bizarre Creations.