In a statement released this afternoon the company confirmed it's exiting the kids licensing games business - as was rumoured - to focus on "core video game franchises and digital initiatives for the future".
"The company will continue to build its strong portfolio of core game franchises and align its resources to deliver games on both existing consoles and new and emerging platforms," it explained.
"The company intends to accelerate digital revenues by extending and supporting key console launches, and to create dedicated digital properties for emerging platforms."
Despite rumours of cancellations, THQ states that its five internal studios are developing games including UFC Undisputed 3, Darksiders II, Company of Heroes, inSANE, Saints Row, Warhammer 40,000, and the new title from Patrice Désilets and his team.
The company also continues to work with "prominent external development talent" on "both existing and new franchises," the firm states.
"THQ's goal is to optimize its portfolio for the current generation of consoles and to establish new franchises on the next generation of game devices," it adds.
"THQ will be a more streamlined organization focused only on our strongest franchises," said Brian Farrell, President and CEO, THQ.
"The success of Saints Row: The Third is an example of what our revised strategy and focus can achieve. We have now shipped 3.8 million units globally and are currently expecting to ship between five and six million units lifetime on this title.
"Additionally, our robust digital content offerings for this game have resulted in the highest digital revenue of any console title in our history."
The news follows calls earlier today from a group of former THQ staff for four "underqualified" senior executives, including CEO Brian Farrell, to be fired. In a letter sent to THQ's board of directors and several investors (via Edge), the ex-employees claim that "chronic and constant mismanagement" caused a slew of layoffs and studio closures.