As part of a series of cost reductions within THQ, Heavy Iron Studios was spun off as an independent company in June 2009.

Early during his career, Steve Gray worked for the visual effects companies Robert Abel and Associates, Rhythm & Hues, and Digital Domain.

Although they were turned down due to Digital Domain's lack of experience in the field, Gray and McKibbin were offered positions at the game developer, EA Canada, which both accepted.

Gray quickly discovered his dislike the studio's sports games and soon switched to Square USA, where he managed the development team for Parasite Eve.

[6] Following significant financial losses at THQ, the company announced that it would spin off several of its developers, including Heavy Iron Studios.