It's being reported that Underground Developments (formerly known as Z-Axis) is to be shut down once all work on Quake Wars PS3 work is complete.
Things have been a little too quite on Enemy Territory: Quake Wars for console recently (apart from that May release date leaking out). So it's a shame that the latest story brings with it some bad news.
According to Develop magazine the studio's parent company Activision has yet to offer a comment on the rumour. But that hasn't stopped the publication suggesting the closure could be related to the looming merger of the Activision and Vivendi businesses.
Nothing official yet then. But it's not looking good. More soon. May 30 at the latest.