Video game firm THQ Inc. is closing its development operation in Arizona and eliminating 48 jobs.
The Agoura Hills, Calif.-based THQ (Nasdaq: THQI) said the move was part of a realignment strategy because it was not going to be pursuing games such as those historically developed at the Phoenix-based studio.
The company plans to continue operating a quality assurance operation in Phoenix, and it already has begun looking at the game developers in Phoenix for positions that are open in other company offices around the U.S., said Angela Emery, a THQ spokeswoman.
“We are in conversations with many of the employees about jobs at other locations,” she said.
The game development business originally was named Rainbow Studios, and at one time was one of the largest operations in the Southwest. It produced dozens of games, most notably the “MX vs. ATV” series that pitted motocross and all-terrain vehicles in races on multiple platforms from the Sony Playstation line to the Microsoft Xbox and Nintendo Wii.
One of its last big features was “Deadly Creatures,” a game where players took over the lives of a spider and a scorpion, that was played on the Wii.
The company’s name was changed to THQ Digital Studios Phoenix last year.
THQ announced a corporate realignment last week, and said it was doing away with many racing games. It also pared down the number of development studios to five, with games focusing on some of the top sellers for the company.
THQ reported its first quarter results at the end of July that saw a $38 million loss, or 56 cents per share, despite an increase in net sales to $195 million. Company officials said sales were off among some of its titles, but it expected that to regroup in the second half of the year as the gaming industry headed into the holiday season.
This is not the first time THQ has trimmed its staff. In 2009, the company cut back amid tough economic times, slashing 600 jobs from its payroll