Videogame Maker THQ Hitting the Skids

With a falling stock and depleting finances, Calabasas-based videogame maker THQ faces tough choices.

The plan? Fire 600 workers, cut $220 million in annual expenses and make better games.

THQ Chief Executive Officer Brian Farrell denied to the L.A. Times that his company was facing bankruptcy as “idle gossip” and says that the market is sound. Most numbers agree, with the sector in 2008 increasing 25% over the year before. But videogame makers allowed production costs to skyrocket and the current economy has helped put them in a bind.

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