THQ Shuts Down At Least Four Studios; St. John Departs WildTangent Ahead Of Layoffs
This story was written by Tameka Kee.
Game publisher THQ is reportedly shuttering at least four studios and laying off quite a few staff just days before it's supposed to post Q3 earnings. Dallas-based Paradigm Entertainment, LA-based Mass Media, Santa Clara, CA-based Locomotive Games and Seattle-based Sandblast Games will all be shut down completely, Gamasutra says; while U.K.-based Juiced Games and Arizona-based Rainbow Studios will each see major staff reductions. Also up in the air is the fate of Vermont-based Helix Studios.
The cuts cross consoles and game genres, affecting franchises like Destroy All Humans!, Juiced, and Stuntman. But they're not completely out of left field, as the publisher reported major losses in Q2, and at least two of the closing studios haven't exactly been productive in recent months. Just one game has come out of Paradigm (last year's Stuntman: Ignition) since THQ (NSDQ: THQI) acquired it from Atari back in 2006; and Mass Media hasn't release a game since its acquisition in early 2007. THQ execs declined to comment on any of the rumors, though we'll likely find out if the insiders are right after earnings get released on Wednesday.
In related news, meanwhile, Seattle-based casual gaming company WildTangent has also closed its own internal studio, per TechFlash; and let go of 20 workers, or about a fifth of its staff. Though WildTangent has a roster of over 1,000 games, the company only developed about 35 of them itselfand its studio had only produced three titles in the past two years. And Gamasutra says CEO Alex St. John has stepped down, handing the reins over to Mike Peronto, who'd recently been serving as COO. St. John, WildTangent's co-founder, will stay on in is role as chairman.
By Tameka Kee