Worst part is that one of the studios closes is Blue Tongue, the guyds that made deBlob and deBlob 2

THQ Announces Internal Studios Realignment to Focus on Key Strategic Initiatives
Company Increases Emphasis on High Potential Categories; Reduces Focus on Kids and Movie-Based Licensed Titles for Consoles

AGOURA HILLS, Calif., Aug 09, 2011 (BUSINESS WIRE) --

THQ Inc., (NASDAQ:THQI) today announced a strategic realignment of its internal studio development teams to better align resources with the company's future portfolio of interactive entertainment. 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(R): The Third,(TM) and inSANE(TM) in collaboration with renowned film director Guillermo del Toro; Relic Entertainment, creators of Company of Heroesand the upcoming Warhammer 40,000(R): Space Marine(TM) for PlayStation 3 computer entertainment system and the Xbox 360 video game and entertainment system; Vigil Games, developing Darksiders(R) II and next year's MMO Warhammer 40,000: Dark Millennium Online(TM); and THQ San Diego, developers of WWE All Stars and creating best-in-class fighting games.

http://investor.thq.com/phoenix.zhtml?c=96376&p=irol-newsArticle&ID=1594938&highlight=

THQ is really hurting. They bet a lot on Homefront and it just didn't work out. Then Red Faction Armageddon was just awful both gameplay and sales.

Yea, i was really hoping homefront would be better. I thought it was going to have alonger story mode sine it was an "emotional" shooter or what ever they called it. I still hope it gets a sequel or something similar as i liked the idea of an alternate history were the US wasn't a supper power but the underdog

Sad to see another Australian studio go down..

Homefront has shipped 2.6 and will likely ship 3 - 3.5 mill.

If they expected more than that, with the quality involved, they're barmy.

Man the Australian game development community just can't catch a break. First Krome Studios then the LA Noire debacle (which looks like may end with Team Bondi going bust by the sound of things) and now this

I'm sure de Blob 2 helped a lot... >_>

forgot Pandemic a few years ago, and aurora as well. But the Australian Mobile development scene is booming because many of the former experienced employees of the bigger studios are forming indie mobile studios which is great. Two of the ios premium developers are Firemint and Halfbrick who are Australian, EA has its mobile studio based in Australia, Gamesloft is rumoured to open a studio in brisbane to capitalize on the other studios closers are avaiable talent. 

Problem is that while this is all well an good tho much talent is being taken by the better conditions and pay Web development industry and leaving the country to places like Europe and Canada.