Kaos Studios, the developer of Homefront and subsidy of THQ has recently been dismantled by the parent company. Although the game did not receive critical acclaim from reviewers, it did still sell over a million copies, which is extremely respectable. However, THQ feels that production in New York is an expensive process, and is planning on moving assets to their Montreal location.

The news was announced this afternoon via Zach Wilson's twitter account, a now-former writer and designer at Kaos Studios which later stated that Wilson "had found a place to land. We all saw this coming and many devs have moved on to bigger better things."

In addition, THQ's Digital Warrington studio was also cut from the budget persay, after garnering poor reviews and sales of a mere 2,000 copies on their XBLA title Red Faction: Battlegrounds. Former employees were invited to apply for application in Montreal, but likely many of them moved on from the company.

I can't exactly say this was a poor move by THQ, as I can understand the need to cut costs, but as long as it doesn't leave any former employees stranded without a job then it doesn't seriously affect the industry.

[Gamasutra ]