They are now fully dedicated to Blizzard games moving forward.
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Activision Blizzard announced today that they have merged their Vicarious Visions studio from Activision over to Blizzard. This news comes courtesy of GI.biz.

This means that going forward, Vicarious Vision's team of about 200 people will be considered employees of Blizzard. They will be "full dedicated to existing Blizzard games and initiatives." In other words, Vicarious Visions will no longer be lead developer on any title, which is a damn shame seeing how the amazing work they did on the Tony Hawk's Pro Skater 1+2 remake.

Vicarious Visions also worked on titles such as Guitar Hero, Crash Bandicoot, Call of Duty, and many other Activision IPs. Vicarious Visions was picked up by Activision back in 2005.

"After collaborating with Vicarious Visions for some time and developing a great relationship, Blizzard realized there was an opportunity for Vicarious Visions to provide long-term support," a representative explained to us. They declined to specify what the team has been working on with Blizzard, or for how long.