THQ Inc. said late Thursday that it will open up a new video game development studio in Montreal, Quebec that will employ more than 400 people.

The Agoura Hills company, which in February announced it was cutting $220 million from its budget, closing several studios and laying off 24 percent of its workforce, said the new facility is part of an effort to develop new games in a “cost-effective” manner.

THQ cited tax credits and other government incentives, as well as Montreal’s pool of talent and its university system, in the selection of the city. The company now operates eight studios outside Southern California, including two outside the United States.

“We are focused on building hit franchises and achieving efficiencies within our studio organization, and THQ Montreal will play an integral role in achieving both of these objectives,” Danny Bilson, executive vice president of THQ Core Games, said in a statement.

THQ joins other major North American game publishers, including Electronic Arts, that have studios in Montreal. The company said it is looking at several locations for the new facility, which would be the company’s second in Canada, and expects to open there by mid-2010. The first titles from the studio are targeted for release in fiscal 2013.

THQ shares closed down 17 cents, or 3.5 percent, to $4.66 on the Nasdaq.