THQ closes Australian studios

Mike Bantick
Wednesday, 10 August 2011 13:50

Business IT - Technology

Officially it is a studio realignment allowing THQ to focus on strategic initiatives, but for many Australian video game employees the closure of THQ in Brisbane and Blue Tongue Entertainment in Melbourne will mean a scramble for new employment in what is increasingly becoming an independent development scene.

As part of a realignment of internal development studios, Australia has again been the target of major video-game development studios closures.

THQ has announced the following shifting of focus and strategic realignment of its video-game development: THQ is in the process of transitioning its portfolio away from licensed kids titles and movie-based entertainment properties for consoles and has also decided not to actively pursue further development of the MX vs. ATV franchise at this time.  As a result, the company announced the closure of two studios in Australia, and the elimination of a development team at the company's Phoenix location.  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,â„¢ and inSANEâ„¢ in collaboration with renowned film director Guillermo del Toro; Relic Entertainment, creators of Company of Heroes and the upcoming Warhammer 40,000®: Space Marineâ„¢ 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 Onlineâ„¢; and THQ San Diego, developers of WWE All Stars and creating best-in-class fighting games. 

Today's actions will result in a personnel reduction of approximately 200 people.  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.'

For Australia this means the closure of THQ Brisbane, and in Melbourne Blue Tongue Entertainment, recently known for the de Blob series of games.

CONTINUED ON PAGE 2