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They probably didn't want to pay the licensing for the UFC I imagine that the margins on the game were razer thin and the sales were declining, this year's game sold less than half of the last game so far. THQ just can't afford to do anything that is not making money right now.

It's a bummer they couldn't have got the team to work on another game tho. Maybe EA will pick a lot of them up, they need some good PR and a lot of the devs are experienced making that kind of game.

THQ are trying

THQ’s San Diego studio has been shuttered following the sale of the UFC license – the team’s main concern – to EA Sports.

 

“THQ confirms that today’s announcement regarding the UFC license transition will affect the company’s San Diego studio,” the publisher said in a statement.

“THQ is working closely with those relevant staff to either find possible employment within the company, or potentially with EA.”

Industry figures have respond to the news with criticism of THQ’s timing of the announcement when it is likely to be swallowed by E3 hype.

 

http://www.vg247.com/2012/06/05/thq-confirms-ufc-dev-team-laid-off/

I just hope EA steps up, I imagine that THQ will be trying to move the best people onto their WWE games.



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