Sony is purportedly closing down its oldest in-house developer. As indicated by VGC, the organization hasn’t been renewing the agreements of large numbers of the employees at Japan Studio.

The developer is most popular for its work on franchises like Gravity Rush, Ape Escape and Knack, as well as for assisting with Bloodborne, The Last Guardian and the new Demon’s Souls remake.

A few parts of the studio, including the group that works on Sony’s Astro Bot franchise, will keep on working for the organization, however by its hints, Sony has headed out in different directions with the greater part of the other staff.

Recent tweets from a few groups who worked at the studio seem to authenticate VGC’s reporting. The move comes after a few prominent employees, including Gravity Rush and Silent Hill director Teruyuki Toriyama, left the organization before the end of last year.

VGC recommends Sony’s decision to close Japan Studio originates from the fact the developer hasn’t been productive in recent years. In November, Bloomberg published a report that said lately a large number of Sony Japan’s development groups had been scaled back.

As per the publication, the feeling at Sony Interactive Entertainment’s US division was that the organization didn’t require games that “only do well in Japan.”

Update 8:37 PM ET: Sony has affirmed that it’s rearranging Japan Studio. “In an effort to further strengthen business operations, SIE can confirm PlayStation Studios JAPAN Studio will be re-organized into a new organization on April 1,” a representative for the organization told Engadget.

“JAPAN Studio will be re-centered to Team ASOBI, the creative team behind Astro’s PLAYROOM, allowing the team to focus on a single vision and build on the popularity of Astro’s PLAYROOM.”

The organization added that it will think most of its localization, IP management and external production efforts within its PlayStation Studios brand.