THQ Closes Five Studios (Updated)

Update: Shacknews has confirmed, via sources, that Stuntman: Ignition and Pilotwings 64 developer Paradigm Entertainment was indeed dissolved by THQ today.

Fellow THQ subsidiary Mass Media was also closed today, according to Shacker PowerLlama. As for Juice Games, Develop claims the studio will lose about a third of its staff, but will remain open.

In addition, Helixe, Locomotive Games and Destroy All Humans! Path of the Furon developer Sandblast Games appear to have joined Mass Media and Paradigm in closure, as THQ no longer shows them on its studio list, which now numbers 11.

Original Story: THQ will close "four to five studios" this week, according to Kotaku.

Of THQ's 16 studios, Juiced franchise developer Juice Games and Stuntman: Ignition veteran Paradigm Entertainment are said to be among those facing closure. Earlier this year, THQ announced that it would no longer produce Juiced or Stuntman games.

No reason was provided for the rumored closures, though some speculate the global credit crisis is playing a factor, as it has negatively affected such major companies as Sony, Nintendo and Electronic Arts.

THQ will present its Q2 2009 fiscal results on Wednesday.