We received a tip late last night from a source who claimed that things just "didn't work out" with said adaptation.
Apparently, at the moment, some staff are still in the dark with regards to the closure, but things "had been rocky for a while". There is no word as of yet what will happen to The Avengers game.
We contacted THQ for more information, but we were told they didn't want to comment at this stage. We expect to hear more details throughout the day.
UPDATE: Tsumea is now reporting that THQ is closing all studio operations in Australia, which means that Blue Tongue - the studio behind De Blob - is also being closed this week.
THQ has responded here.