THQ has shuttered multiple studios and canceled key game franchises as part of a “strategic realignment” of its internal studio development teams.THQ is in the process of transitioning its portfolio away from licensed kids titles and movie-based entertainment properties for consoles. The company has also killed its MX vs. ATV, deBlob and Juiced franchises. Homefront 2 remains in development, but it's been moved to Montreal.

Following the closure of Kaos Studios in New York City and THQ Digital Warrington in the United Kingdom, THQ is also shuttering THQ Digital Phoenix and the closure of two studios in Australia. The company is maintaining its Quality Assurance team in Phoenix.

THQ’s five internal development studios are focused on key initiatives and franchises: THQ Montreal, creating an unannounced new IP with a team led by industry veteran, Patrice Désilets; Volition, Inc., developing the highly anticipated upcoming game Saints Row: The Third, and inSANE in collaboration with renowned film director Guillermo del Toro; Relic Entertainment, creators of Company of Heroes and the upcoming Warhammer 40,000: Space Marine for PlayStation 3 computer entertainment system and the Xbox 360 video game and entertainment system; Vigil Games, developing Darksiders II and next year’s MMO Warhammer 40,000: Dark Millennium Online; and THQ San Diego, developers of WWE All Stars and creating best-in-class fighting games.

As a result of these closures, 200 people have been let go. All affected employees are eligible to apply for open positions within the company globally.

“With this realignment, we are narrowing our focus to high-quality owned IP with broad appeal that can be leveraged across multiple platforms, and to work with the best talent in the industry. By right-sizing our internal development capacities for our console portfolio, our five internal studios are focused on delivering high-quality games with talented teams driving the execution of those titles to market,” said Brian Farrell, President and CEO, THQ. “As we have outlined in our business strategies, we are making shifts to reduce movie-based and licensed kids’ video games in our portfolio, which underscores our strategy to move away from games that will not generate strong profits in the future.”

Farrell added, “We will continue to evaluate our capital and resources to concentrate on fast growing digital business initiatives such as social games, mobile and tablet-based digital entertainment.”

The company has recently outlined its four-pillar digital strategy: 1) create a digital ecosystem around key console title launches such as the scheduled November 15, 2011 release of Saints Row: The Third, which includes plans for a robust DLC schedule, online Season Pass, and in-game store for consumables; 2) create a critical mass of users on social media platforms such as Facebook and mobile platforms, including iOS and Android, using THQ-owned or branded content, such as the upcoming fall release of Margaritaville Online, based on Jimmy Buffett’s popular brand; 3) create an ongoing digital revenue stream with the launch of the company’s MMO, Warhammer 40,000: Dark Millennium Online; and 4) continue to drive digital end-user sales through existing channels as well as through the upcoming re-launch of THQ.com.

About the Author

John Gaudiosi

Editor-in-Chief

John Gaudiosi has been covering videogames for the past 20 years for outlets like The Washington Post, CNET, Wired Magazine and CBS.com. He has focused on the convergence of entertainment and videogames for outlets like Video Business, Home Media Magazine, Entertainment Weekly, The Hollywood Reporter and Variety. He currently serves as Editor-in-Chief of Gamerlive.TV and is also a freelance game columnist for Reuters and writes for outlets like Forbes.com, NVISION, Official PlayStation Magazine, EGM Now, Geek Monthly, PrimaGames.com, and Yahoo! Games. John also serves as the video game expert for NBC in Washington D.C. and has produced videogame documentaries for The History Channel and Starz Entertainment. John was named one of the Top 50 Game Journalists in the world by Next-Gen.biz in 2007. He is the co-author of Scholastic Books' How to Get into Videogames, Prima Publishing's Madden: Twenty Years of Videogame Football and Electronic Arts: The Official History.