THQ Is Ready to Close Down Big Huge Games

THQ is apparently contemplating closing down well-known developer Big Huge Games unless it can find a buyer for the entity pretty soon. The publisher is also saying that it plans to spin off two other development studios, Heavy Iron and Incinerator, in order to limit the losses that it incurs with their operation.

It seems that THQ has already sent a WARN notice to the developer, which signals that more than 50 employees might be laid off imminently.

Crispy Gamer has even seen a statement from THQ, which states that “As part of THQ’s previously announced business realignment and related headcount reduction plans that targeted cost reductions of $220 million, including a reduction in workforce of 600 people worldwide, THQ today notified the staff at two of its development studios that they will be spun out as independent companies: Heavy Iron in Los Angeles, CA, and Incinerator in Carlsbad, CA.”

Heavy Iron and Incinerator have mostly done work on games based on well-known licenses, like The Incredibles, WALL-E and SpongeBob Square Pants. Apparently, they will continue to work for THQ, but they will have to mange their own finances.

Big Huge Games is in a different position. The company was founded in 2000 by game industry veterans, one of them being Brian Reynolds, the lead designer of the classic 4X turn based strategy Alpha Centauri. The studio created the Rise of Nations trilogy and released a conversion of the Settlers of Catan board game for the Xbox Live Arcade. The latest expansion of Age of Empires III, which was initially released by another developer that is no longer around, Ensemble Studios, was also handled by Big Huge Games, under the name Asian Dynasties. Apparently, it is working at the moment on a role playing game for THQ, which will probably get canceled if the company is sold or closed down.