THQ has announced that it isn't going to actively pursue further development of the MX vs. ATV franchise. It is also transitioning its portfolio away from licensed kids titles and movie-based entertainment properties for consoles. The previous game in the MX vs. ATV Franchise, Alive, shipped at a lower price point and offered more content via DLC - an idea which failed.

As a result the publisher has closed two studios in Australia and shut down a development team working from the company's Phoenix location. All in all approximately 200 staff have been let go, with THQ stating that all affected employees can apply for open positions within the company.

"With this realignment, we are narrowing our focus to high-quality owned IP with broad appeal that can be leveraged across multiple platforms, and to work with the best talent in the industry. By right-sizing our internal development capacities for our console portfolio, our five internal studios are focused on delivering high-quality games with talented teams driving the execution of those titles to market," said Brian Farrell, president and CEO, THQ.

THQ is left with five internal development studios working on key initiatives and franchises: THQ Montreal is working on a new IP under Assassin's Creed veteran Patrice Désilets; Volition Inc is working on Saints Row: The Third and inSane (its Red Faction series has been canned); Relic is working on Space Marine; Vigil Games is working on Darksiders II and Warhammer 40.000: Dark Millennium Online; and THQ San Diego's current project isn't known, having shipped WWE All-Stars earlier this year.