MX VS ATV Alive failed to sell a satisfactory amount of copies for publisher THQ, and due to this the company has shut down three internal development teams.
The studio's two Australian studios have been closed down, as well as the development team in Phoenix. 200 jobs have been cut in light of the three studios closing.
THQ boss Brian Farrell said on the situation:
By right-sizing our internal development capacities for our console portfolio, our five internal studios are focused on delivering high-quality games with talented teams driving the execution of those titles to market.
As we have outlined in our business strategies, we are making shifts to reduce movie-based and licensed kids' video games in our portfolio, which underscores our strategy to move away from games that will not generate strong profits in the future.
Homefront developer Kaos Studios have already been closed down by THQ, and the Red Faction series was also canned following Red Faction: Armageddon's commercial performance.
Thanks, Eurogamer.