Disney is to shut its games development studios in Brighton, axeing 40 jobs.

Staff at Black Rock Studios were given the news during a meeting at Brighton town hall yesterday.

The move comes after 100 staff at the same company were made redundant in May.

The latest jobs blow for Sussex comes after a series of major high street names called in administrators and considered closing stores.

Black Rock developed games for the Xbox including the highly successful Pure and Split/Second.

Disney has now been forced to pull the plug on developing sequels to the games as it tries to weather the recession.

Disney Interactive, which took over Black Rock after the company moved to Brighton six years ago, confirmed the closure yesterday.

A spokesman said: “We confirm that Black Rock Studios' current project has not been greenlit for further development.

“Consequently the company informed the employees of the intent to enter a consultation process to close the studios.”

Calls to the Black Rock Studios switchboard at its offices in West Street, Brighton, went to voicemail yesterday and nobody could be reached for comment.

Disney still has a substantial presence in Brighton with Disney On-line Europe which occupies four floors at The Arches office block at Preston Park.

But it is slimming down its empire and closed its offices in Vancouver, Canada, as well as axing the 100 jobs in Brighton in May.

Phil Jones, of Wired Sussex, said: “It is a real shame.

“It is not unexpected after the initial round of redundancies earlier in the year.

“Overall the strength of the digital sector is extremely strong and is continuing to grow.”

Black Rock was Disney's only games development studio in Europe.

The company has been re-thinking its strategy on video gaming to concentrate more on freemium gaming which offer basic gaming free and charges a premium for advanced content.

Brighton Pavilion MP Caroline Lucas said: “The closure will come as a real blow for the 40 workers who face losing their jobs.

“Despite this bad news I am confident that Brighton has a very bright future in the digital industries.”

The news came on the same day 34 jobs were axed at a Sussex packaging plant.

Pharmaceutical giant Teva UK confirmed the redundancies at its plant in Hampden Park, Eastbourne.

The company, which employs 200 people in Eastbourne producing painkillers, antibiotics and cholesterol-reducing medicines, is considering moving some of its operations to Europe.