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THQ reducing studios and staff, Australian studios seem fine

Following the closure of five internal studios, it looks like publisher THQ are further reducing 17% of staff and halting development on several unannounced titles. It's a move that's a result of the current economic situation that has caused "decreased consumer confidence, a cautious retail environment, and problematic exchange rates".

The report from Shacknews says that THQ are concentrating on more rational kids and family games and key brands such as the Warhammer 40,000 property. With the success of de Blob by Blue Tongue Entertainment, and with THQ Studio Australia working on Warhammer 40k: Space Marine, it would seem that the Australian studios owned by THQ have come out of this restructuring relatively well....

"We have made substantial progress in improving product quality and innovation, as evidenced by recent shipments of several well-reviewed games including de Blob and Saints Row 2," explained THQ CEO Brian Farrell.