Pucino explained why the two Australian studios were closed: ”We changed for a reason, because we think it’s the right thing to do… With respect to (not) talking about studio closures at our annual meeting this year, then making an announcement two or three weeks later, it was simply because we weren’t ready to announce it at that point in time.”
Basically, THQ is belt-tightening, and it dictates how many studios it can support. ”We think the best position we could be in with respect to studio structure right now, fewer is better,” Pucino said. ”A year ago we had about 11 (studios), now we’re down to five. We think that’s the right number.”
”The two that we just shut in Australia, they were working on games that were not consistent with our strategy any longer. One was working on a movie-based console game – again, not part of our strategy. The other was working on a kids’ licensed game – not part of our strategy either. That’s what drove that decision.” He continued.
Finally, pure economics and tax incentives have influenced the company. Ten years ago, the Aussie dollar was about half the US dollar, allowing them to purchase studios. Now that the exchange rate is worse, they can no longer support them. In addition, while Canada has offered tax incentives to have a studio in Montreal, New York’s expensiveness forced them to close Kaos Studios, developers of Homefront.
Pucino concluded, ”The industry has changed a lot, our strategy has shifted along with the industry, and unfortunately, that resulted in closing some studios.”
