THQ is starting to go down the same troubled path as Midway.

The Agoura Hills, California, company on Wednesday reported a net loss of $191.8 million, or $2.86 per share, on revenue of $357 million for the third quarter, compared with net income of $15.5 million, or $0.21 per share, on revenue of $509.6 million for the same period last year.

Wall Street was overly optimistic to expect the first sign of profit in over two quarters, forecasting  net income of $5.9 million on revenue of $403.4 million.

As a result of the loss, THQ will reduce annual spending by $220 million. The business realignment plan also calls for layoffs of 600 workers, or approximately 24 percent of the company’s total work force.

Last year, the company announced a new strategic plan wherein it will focus on a smaller number of core titles. THQ CEO Brian Farrell said in a statement that key titles such as Saints Row 2, WWE SmackDown vs. Raw 2009, and de Blob have done well, with the games shipping 2.6 million, 4 million, and 700,000 units, respectively.

Important titles coming out in the next few months include Deadly Creatures, WWE Legends of WrestleMania, and Red Faction: Guerilla.

THQ shares dropped $0.10, or 2.36 percent, at $4.14 on Wednesday.