THQ Closing Five Studios, Slimming Down Two
Analysts might have declared the video game industry ‘recession-proof’ but there are some developers and companies that are proving to be more ‘recession-resistant’. Many are being hit hard by the economic recession. People are still turning to escapist avenues of entertainment but they’re spending less money doing so.
THQ is experiencing some tightening of the financial belt: they’ve axed five different studios and trimmed some employees on two more. A spokesman of the company confirmed that Paradigm Entertainment, Mass Media, Helixe, Locomotive Games and Sandblast Games have all been closed down. Rainbow Studios and Juice Studios both saw a portion of their workforce laid off.
There haven’t been any notices as far as what titles that were in development have been kept and what has been given the boot.