The new facility, under construction in Brisbane, is expected to employ 35 to 50 staff within the next two to three years. It will support and manage THQ's game development activities throughout the Asia-Pacific region.
The studio is being established as part of a decentralisation exercise, with THQ aiming to have similar presences in the United Kingdom and the United States.
THQ said it had decided to physically relocate its game development facilities to produce games more relevant to the markets each serves.
According to THQ, role-playing and first person shooters (FPS) were the most popular game genres in Australia.
"SpongeBob is huge in America but does not have same cult following in Australia, yet we're still producing games here for that," said the spokesperson.
Jack Sorensen, executive vice president of worldwide studios, THQ, said the company would be able manage product development cycles more effectively under the new structure.
Steve Dauterman, newly appointed head of THQ Asia-Pacific, said Queensland was the perfect location for the facility. THQ said piracy concerns did not play a part in the decision to set-up its operations in Australia.
"Brisbane is considered the epicenter of games development talent in Australia," said Dauterman.
A spokesperson for the company added that a senior executive for the company had visited Queensland "and fell in love with it".
THQ develops entertainment products for all major gaming platforms including PC, Xbox and PlayStation2.
