THQ Closes Two Studios, Shifts Focus From Licensed Games
by Stefanie Fogel, posted on 09 August 2011 / 3,721 Views
THQ today announced that it is undergoing a strategic realignment of its internal studio development teams and transitioning its portfolio of titles away from licensed kid and movie-based properties.
As a result of this restructuring, the company says it has decided to close two studios in Australia, eliminate a development team at the company's Phoenix location, and discontinue further development of the MX vs. ATV franchise. Two hundred people have been laid off following the company's decision, though THQ says that the 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," explains THQ President and CEO Brian Farrell. "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."
THQ's five internal development studios are currently working on key franchises that reflect the company's new alignment. THQ Montreal is working on an unannounced new IP with industry veteran Patrice Désilets; Volition is working on Saints Row: The Third and inSane, the project of well-known film director Guillermo del Toro. Relic Entertainment is developing Warhammer 40,000: Space Marine for the PS3 and Xbox 360; Darksiders II and Warhammer 40,000: Dark Millennium Online are being developed by Vigil Games; and THQ San Diego is working on fighting games.
THQ recently outlined a new digital strategy that includes plans for a robust DLC schedule, online Season Pass, and an in-game store for consumables for upcoming console titles like Saints Row: The Third. The company also plans on utilizing social media platforms such as Facebook, iOS, and Android, and wants to create an ongoing digital revenue stream through Warhammer 40,000: Dark Millenium Online.
