The tough current economic climate has hit yet another video game publisher, this time THQ, who have posted increased losses this year and have been forced to lay off about 250 employees as a result.

The move has also caused both Red Faction: Guerrilla and Darksiders: Wrath of War to be delayed until at least March of next year.

THQ lost more than £72 million in the second quarter of this year, a substantial increase from the £4.3 million loss for the same period last year.

THQ now plans to close five internal development studios and has cancelled a number of titles still in development alongside the laying off of around 17% of their total workforce - around 250 positions.

"We are aligning our business to be more competitive in key consumer segments and address the current business environment," said CEO Brian Farrell in a statement to the press.

"We expect the combination of a much more focused and competitive product line with a more efficient cost structure to put THQ back on the path to growth and profitability in fiscal year 2010."