THQ has reportedly closed its San Diego studio, the developer of WWE All Stars, making all staff redundant.
According to reports, the studio was working on the publisher's next UFC game, but that licence has now passed to Electronic Arts.
It's an oddly timed move, and doesn't bode well for a publisher trying to raise its stock valuation. Though if true, of course, the midst of E3's conference rush is a great place to hide bad news.
We'll update you as soon as we hear more.