Word is that THQ is on track to hit its target of slashing $220 million from the fiscal 2010 budget. The company has been able to achieve these reductions primarily through major employee reductions throughout the company.

THQ has already announced the closure of several studios, as well as the spin of some studios into independent companies. The company will have to continue their realignment, as well as execute on their strategy of investing in titles that have the highest franchise potential in order to execute and keep the train on track to profitability.

The company continues to be upbeat about upcoming titles, including UFC 2009: Undisputed, Red Faction Guerrilla, and Darksiders as the titles to be leading the way for the company in fiscal 2010. According to our sources, all three of these titles continue on track at the moment and seem to be building at least some positive momentum in early media previews.