The firm will close following the completion of PlayStation Vita launch title Little Deviants, GameIndustry.biz reports.
"Bigbig have been an important part of SCE Worldwide Studios since joining in 2007," Sony's announcement read.
"However, it was felt that by focusing on other studios that are currently working on exciting new projects, we would be in a stronger position to offer the best possible content for our consumers."
One of those other studios is Sony's Cambridge studio, which will undergo restructuring to work closely with Guerilla Studios on the Killzone game for PlayStation Vita.
Little Deviants is a collection of minigames that make use of the PlayStation VIta's touch screen, back touch panel and accelerometer in unique ways.
It will be a launch title for Sony's new handheld in both the US and UK along with titles such as Uncharted: Golden Abyss and WipEout 2048.
Watch the PlayStation Vita showreel, which contains footage of Little Deviants, below: