Sources say the team has been informed of the decision and will be disbanded. It's hardly a surprise. The axe has hung over mobile since Vivendi was bought by Activision earlier this year.

Shortly after the buy-out Activision said VGM would be ‘realigned or divested', and the latter looked more likely as Activision has never had its own mobile unit, preferring to license its IP to third parties such as Glu.

It can now be assumed that the most lucrative VGM brands, such as Crash Bandicoot and Spyro The Dragon will go the same way. The closure of VGM's US operation earlier this month by Mobile Games Blog.

On the 'traditional' games side, Activision is already is the process of selling Vivendi-owned studios such as Massive (based in Sweden, developer of World in Conflict).