Reports began circulation this morning about major layoffs at a handful of Activision-owned development studios, affecting as much as half of Radical Entertainment's staff (Prototype), an undisclosed amount of Neversoft employees (Guitar Hero, Tony Hawk), and the entirety of Luxoflux (Tranformers). An Activision rep confirmed the layoffs to us this afternoon, not giving specific numbers, but solidifying the closure of Luxoflux in entirety.

The full company statement reads: "Activision Publishing continually evaluates its resources to ensure that they are properly matched against its product slate and strategic goals. In 2010, the company's SKU count will be smaller than in 2009 driven in part, by a decrease in the number of music-based games we will be releasing. As we discussed on our earnings conference call yesterday, we are directing our resources against the largest and most profitable business segments, and as part of this initiative, we are realigning our resources to better reflect our slate and the market opportunities. At the same time, we are increasing our digital/online capabilities as we expect that digital/online will continue to become a more meaningful part of our business model in the years ahead."