A studio that has been tasked pretty much solely with developing for hardware that was becoming obsolete (PSP); had become obsolete (Vita) or was never relevant to begin with (VR) delivered what was required for them every time and largely external factors (i.e. the hardware itself) signaled their lack of sales.
I know it's a business world and all that, but it seems especially heartless.
I mean, I'll miss Cambridge, but they were kept alive for 20 years and their top franchises were Primal and Medievil ... I feel like it's hard to say this came out of nowhere.
Also, as it said in the statement, Sony is "making changes to European studios structure", which would be a corporate analysis of business with lots of adjustments across operations, it'd just make sense that as part of this, they'd close offices that don't fit the new business plan. Cambridge helped with some engine tech, it helped with the European DVR, it made a VR game, etc; it was a versatile office, but (except for VR, which is interesting and unfortunate that Sony is closing a company that I had assumed would be more or less dedicated to VR the way other studios were more or less PSP/Vita developers) but the new roadmap may call for different needs.
I agree with you that Cambridge has to suffer even tough they always delivered on their tasks. The issue was the management.
As an owner of C-12, 24: The Game, I believe even TV Party (as well as several others from Cambridge), I wouldn't go THAT far to say that was the only issue. Then again, Killzone Mercenary was awesome and I have heard lots good about RIGS, so the Guerrilla relationship seemed like it was placing everything in place for a brighter future that sadly will not happen.