Gamertell

Every day we report on financial problems in the game industry and few companies are having a tougher go of it than well-known publisher THQ, posting a $115 million loss for its second fiscal quarter ending September 2008.

Now THQ has announced a “restructuring,” aka corporate speak for layoffs, in its mobile entertainment division. Sure enough, Gamasutra reports that the publisher will layoff 100 people.

The restructured mobile entertainment division will focus solely on smartphones, company reps told Gamasutra. Studios in San Diego, Germany and the United Kingdom are getting shut down as a result of the changes.

Everyone seems to be struggling in this economy, even a publisher with some lucrative licenses in its stable. THQ publishes the WWE-themed wrestling games, the sports entertainment industry’s answer to the Madden series. In addition to that, THQ has the rights to make games based on popular Nickelodeon characters including Spongebob Squarepants. The wrestling games are a veritable license to print money, while the Nick games are a license to print well, mostly shovelware. But it’s shovelware with selling power. This recession looks like it’s going to get worse before it gets better. Actually, it looks like it’s going to get worse before it gets worse.

Read [Gamasutra] Also Read [GameDaily]