The shuttering comes In the wake of the company's's commitment to release fewer Guitar Hero titles in 2010.
According to Kotaku, about 30-40 people have lost their jobs and the rest will move to Activision's Santa Monica offices to work directly under the fist of the publisher.
RedOctane, as you may remember, released the first Guitar Hero game (developed by Harmonix), and its plastic guitar peripheral.
Underground Development, the studio responsible for Guitar Hero: Van Halen is, according to Kotaku, no more. The entire studio has been dismantled and shut down.
It's hard not to be cynical here and truly believe that if Activision didn't oversaturate the music-game market, all jobs and entire studios would have remained intact.