THQ has laid off all staff at its San Diego development studio.
The closure follows last night's announcement that EA had acquired the UFC license from THQ.
THQ Studio San Diego was believed to be have been working on the next UFC game for THQ, a product which is now redundant.
THQ Studio San Diego was acquired from Midway Games in August 2009, going on to develop games in the UFC Undisputed series and WWE All-Stars.
"THQ confirms that today's announcement regarding the UFC license transition will affect the company's San Diego studio," said the publisher in a statement to Kotaku.
"THQ is working closely with those relevant staff to either find possible employment within the company, or potentially with EA."