Following frantic internet rumours and reports that Activision had laid off a number of employees across at least two of its internal studios, while cancelling two high profile projects currently in development, the news has just been confirmed by Activision proper in the publisher’s latest financial report.

Both this year’s iteration of Guitar Hero and the long-in-development True Crime: Hong Kong have been cancelled in order to “focus on the greatest opportunities that the company currently has to create the world’s best interactive entertainment experiences.”

The decision to discontinue development of the 2011 edition of Guitar Hero, however, came down to the “continued declines in the music genre,” while Activision is set to disband the specially created Guitar Hero business unit.

DJ Hero developer Freestyle Games and port-house Vicarious Visions are said to have been affected by layoffs.

In a bit of concerning prose also contained within the financial report, Activision Blizzard CEO Bobby Kotick notes that 30% of the company’s overall revenues currently come from digital channels - revenues bolstered by increased sales of “Call of Duty map packs and value-added services for Blizzard Entertainment’s World of Warcraft.”

It’s now believed that Activision Blizzard will focus on its core three franchises going forward, namely Call of Duty, StarCraft and Warcraft (World of). The new Bungie partnership and property deal was also mentioned in the financial report, while talk of “an innovative new universe with broad appeal that will be revealed at Toy Fair later this week and will bring the world of toys, video games and the Internet together in an unprecedented way” made it into the report, too.

Sorry rhythm music and True Crime fans.

Source: Nintendo Universe and VG247