UFC Undisputed 3 failed to break even – which triggered the sale of the UFC license to Electronic Arts – THQ representatives allegedly said during an E3 investor meeting. "THQ sought to exit its UFC contract as the most recent iteration fell short of its ≈2 million unit break-even point," a Wedbush Securities report claims. THQ has yet to confirm the report.
EA Sports executive VP Andrew Wilson recently revealed that THQ approached EA to first initiate talks on the deal.
In related news, a quick search shows that a number of recently laid off THQ San Diego employees have listed work on "UFC 4" on their LinkedIn profiles. THQ's UFC series originally appeared to be annual with its first two games before the company planned an extra year to develop the latest game.
We've reached out to THQ for confirmation on this information, and will update as soon as we learn anything new.