The MMA series was losing money.
A fourth Undisputed game was in development when THQ sold the UFC license to EA.
As reported by Giant Bomb, THQ expects to pay out $1.1m in severance packages, following the closure of THQ San Diego – which was quietly announced last week.
The publisher will also cough up $1.3m on costs related to the studio's facilities, and another half-million on charges "related to long-lived assets".
THQ revealed that Undisputed 3 shipped 1.4 million copies.