Sources close to the developer - which closed earlier today (August 22) - have said it had been in the works for 12 to 18 months, according to Eurogamer.
The studio was also working on a gangster game which evolved into a Splinter Cell project using motion capture technology similar to that used for Team Bondi's LA Noire.
Both games were set to be launch titles for Sony's next system, the PlayStation 4.
Founded in 1984 as Psygnosis, Studio Liverpool was Sony Computer Entertainment's oldest first-party developer.
While best known for its work on the Wipeout series, it also created Lemmings, Colony Wars, Overboard! and G-Police, and worked on several F1 games.
Studio Liverpool's last title was PlayStation Vita launch title Wipeout 2048, which was recently given two Wipeout HD DLC packs.
> Retro Corner: Wipeout
Watch a trailer for PlayStation Vita below: