Joystiq

No, it's not a new game title. It's the real-life struggle of THQ, which made word of internal studio closings and significant layoffs official today, as it reported losses of $115.3 million in its fiscal Q2. In total, five studios will be shuttered and 250 employees released (approximately 17 percent of the publisher's workforce), and the company will reduce its forecasted development spending by $100 million in the fiscal 2010 year. "THQ plans to focus on fewer, higher quality titles, and to align its organization and cost structure accordingly," outlines the quarterly financial report. "We will dominate the fighting category!" added CEO Brian Farrell during today's conference call, plugging upcoming WWE and UFC titles.

As for those "higher quality titles," THQ has pushed Volition's Red Faction: Guerrilla into the first quarter of fiscal 2010 (April-June 2009) and Darksiders: Wrath of War into the second quarter (July-September 2009). Also absent in the short term, CFO Colin Slade will be taking an unspecified medical leave of absence. "I'm looking forward to returning to THQ as soon as possible," said Slade before retiring from the call.