What started out as rumors on Twitter and in this Kotaku story has been confirmed: THQ has quietly shut down its San Diego studio and has let everyone that works there go today. Some have speculated that the company did this on the first day of E3 press conferences to avoid media scrutiny.
The studio was working on a new UFC title, but with the news today that THQ has worked out a deal with UFC owner Zuffa and EA to let them take over the rights to make games, that project is dead in the water.
THQ confirmed that changes were afoot at the studio, but made it sound like the transition for employees won't be all that bad.
"THQ confirms that today's announcement regarding the UFC license transition will affect the company's San Diego studio," the company said in a statement. "THQ is working closely with those relevant staff to either find possible employment within the company, or potentially with EA."
We will have more on this story as it develops.