"THQ informed the staff at its Big Huge Games studio in Timonium, MD, that it plans to close the studio if a sale is not completed in the near future," said THQ in a statement to CrispyGamer. "These actions were unfortunate but were necessitated by the difficult economic environment." The move is part of a series of cutbacks at THQ due to disappointing financial results. The company plans to eventually slash 24% of its workforce.

THQ acquired Big Huge Games in January of last year. The studio most recently released Catan (XBLA) and collaborated with the now-closed Ensemble Studios on the Age of Empires III expansion Asian Dynasties.

Big Huge was reportedly working on two unannounced projects: an RPG scheduled for a 2009 release on Xbox 360, PlayStation 3 and PC, as well as a separate Wii title.

THQ also noted that Heavy Iron Studios (Up, WALL-E) and Incinerator Studios (Nicktoons: Globs of Doom, Cars) have been spun off into independent companies.