The future of Kaos Studios was in doubt when word got out that it was hit with layoffs. Unfortunately, there is no question now what owner THQ would have in store for the team behind FPS titles like Frontlines: Fuel of War and more recently the Homefront (which we found rather decent), as the publisher confirmed that business at Kaos Studios has effectively closed as of today.
Homefront managed to prove its worth at retail, selling around a million copies during launch month. Not too shabby when banking on new IP is considered risky. The game was actually pretty decent to boot too, so it's unfortunate THQ deemed it necessary to shutter Kaos as part of its "strategic realignment within its internal studio structure". Future DLC support for Homefront will be handled by THQ's Montreal studio; in fact, Kaos Studios employees will have the chance to relocate to THQ's internal studios in Canada, but that's a far way from the former studio's Manhattan office.
Meanwhile, another victim of restructuring will be THQ Digital Warrington, previously responsible for Red Faction: Battlegrounds and Warhammer 40,000: Kill Team. Employees at the UK-based studio have received their 60-day layoff warnings, so unfortunately closure will be imminent.