Despite the high marks that we gave THQ’s first-person shooter Homefront, and the fact that the game didn’t sell that badly at all, it wasn’t enough to save the people who made it, sadly.
THQ has confirmed that it has closed down the Manhattan-based KAOS Studios, along with its coordinating UK studio THQ Digital Warrington, citing "strategic realignment within its internal studio structure”. We’re not entirely sure what that means, but we probably won’t be seeing a sequel to Homefront anytime soon.
[SOURCE]