"We are assessing the role of Venom Games in Take-Two's overall global studio system and are in a consultation with the employees of Venom in relation to possible redundancies at the studio," Take-Two said in a statement. "No final decision will be made until after the consultation with employees."

The studio previously developed such titles as the Xbox 360 edition of Human Head Studios' Prey (PC, 360) and the Xbox 360 release of Don King Presents: Prizefighter, with Wii and DS versions of the boxing title due out later this year.

The less-than-stellar critical reception of Prizefighter may have prompted the assessment of Venom Games, which was acquired by Take-Two in 2004.