THQ disappoints with $38.4 million Q1 loss

Publisher says Red Faction: Armageddon sales didn't meet expectations, UFC: Trainer delay hurt bottom line.

It's not quite the end of the world, but disappointing sales for Red Faction: Armageddon have put a dent in the company's bottom line. THQ released its financial results for the quarter ended June 30, and it cited the Volition-developed shooter as one of a handful of factors that contributed to a net loss of $38.4 million for the company.

Armageddon didn't live up to its name or sales expectations.

In addition to Armageddon, the blame for THQ's woes was spread between sluggish sales from its children's titles and the late release of UFC: Personal Trainer. The results were even worse than the same period the year before, when THQ reported a net loss of $30.1 million. However, sales for the three months were up, as THQ reported revenues of $195.2 million, compared to the previous first quarter's haul of $149.4 million.

While THQ is coming off a disappointing first quarter and a $136 million shortfall in its previous fiscal year, company president and CEO Brian Farrell expects the publisher to turn things around.

"Despite a light first half, we are looking forward to a strong and profitable second half, including what we expect to be the biggest third quarter, both in revenue and earnings per share, in our company's history," Ferrell said in a statement.

THQ has Warhammer 40,000: Space Marine lined up for the current quarter, with Saints Row: The Third, the Xbox 360 and PlayStation 3 uDraw tablets, WWE 12, and UFC Undisputed 3 set for launch by the March 31 end of its fiscal year.

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85 comments
shadow655
shadow655

I told u they should have made it open world... That's why I didn't buy Red Faction Armageddon. It felt like they slacked off so I guess they got what they deserved... hopefully they can learn from such a foolish mistake.

davidvee
davidvee

Not surprised really, except (maybe) the odd warhammer game and the original Stalker they haven't had a genuinely sublime game since Company of Heroes IMO

mastodonfatguy
mastodonfatguy

Im sure THQ and the other companies who arent in their golden age will bounce back , everyone falls down sometimes. Just learn from mistakes and become more focused.

ChaosUndivided
ChaosUndivided

It's sad to see all these Developers/Publishers losing money. To many gaming systems for them to release games for. Its costly when you make/publish a crap game that doesn't sell well and you had millions made for each console. On a different note, If they made one more expansion for DOW 2 that included the rest of the races, and a campaign similar to Dark Crusade and (this is a must) more maps for multi-player something it severely lacks I would definitely buy.

StSk8ter29
StSk8ter29

I like the looks of WWE '12. I already have that preordered.

dark-magix
dark-magix

its just because they removed the free roam

pidow
pidow

Getting away from the original story, trying to do too much, instead of keep it close as possible to the original, may have cause people not to be interested in the game. I played all in the series, and this one did not feel right, I can't put my finger on it, but alot is missing conpared to the second game, to much directed play, no freedom to check thing out, being short, etc,. not what I/others expected out of the game.

Maleek2K8
Maleek2K8

Funny that the only worthwhile franchise THQ still has is a rip-off of another franchise.

vicsrealms
vicsrealms

If it makes you feel better THQ, I already have Warhammer 40k Space Marines and Saints Row the Third pre-ordered. The rest of your games though aren't really my type of game. As for Red Faction, I only really enjoyed the first one and Guerrilla.

MJ12-Conspiracy
MJ12-Conspiracy

Maybe they shouldn't have bothered with all those kids games and Red Faction Armageddon and that gods awful W40K: Kill Team..... W40K: Space Marine isn't looking so hot either...... Oh....and maybe the blunder that is Homefront should not have been released either..... I guess Saint's Row is all THQ has left that's good....

shaunn191
shaunn191

@PixelAddict Even thier new logo is crap. I'm glad THQ is losing money though, after they pretty much killed MX vs ATV.

simon1812
simon1812

the game was kinda of meh,no point expending on a "kinda ok shooter" with BF3 , MW3, and WH40k space marine on the horizon.

sladakrobot
sladakrobot

I speak only for myself:There was absolutely no THQ game i purchased for my X360,and i own one from day 1.I am not a fan of wrestling games so 70% of their line up lose my interest.Lets hope that the Space Marines is something i like.

XHuLio13
XHuLio13

when the story of Red Faction changed from fighting the powers that opress people to fighting ET and his friends everything started falling down

paradoxaction
paradoxaction

In my viewpoint, Red Faction Armageddon is just another shooter. I knew the Red Faction for first time with the Red Faction Guerrilla. I liked this game because of the open free world together with the exclusive Red Faction game mechanics, like the ability to destroy almost anything in the scenario. For me, the Red Factio Armageddon is a good game but is just another common shooter and the ability of destruction is not so fun. I like the mechanics of this game, particulary the Armageddon, but i prefer the Guerrila because it is more fun. I hope THQ consider to release a new Red Faction with open world someday like they did Red Faction Guerrilla.

PixelAddict
PixelAddict

@pszone See, that's the thing -- they didn't do Cars 2. Which means they lost the Pixar/Disney license deal that had been so lucrative... even if the games were just average, the sales combined with a theatrical release had to be good. Losing such a predictable income (there's always a Pixar movie in June) is terrible. Chalk it up to their inability to make a decent movie tie-in. They've helped create THAT particular problem (tie-ins being terrible) with years of bad games in that category.

pszone
pszone

Well So far bikeing game what did come out to buy in shops flop in Sales. Next thing cars 2 sold but not enough. Homefront got the chop and the company,aslo Red Faction 4 axe seies. Darksiders 2 not going to sale since i think they going to make a another mistake and Saints Row 3 will sell but wont be enough in there sells. I agree that chariman should go or before it gets bad next years proflits really.

PixelAddict
PixelAddict

The best thing THQ has done this past year is redesign their logo. Everything else is just plain trash.

halosqrrl
halosqrrl

where is all this money going

kos_maverik
kos_maverik

That's a pity, I really liked the game :)

PacoTaco
PacoTaco

Muwahah Tuesday was a good day to short their stock

kbmstar10
kbmstar10

And to think they thought they could compete with EA, who posted a huge profit in their q1 reports of more than 900 million bucks and they havent even released the new fifa or battlefield

wolf0
wolf0

im not a big THQ fan but Warhammer 40,000: Space Marine got my $60 i hope the online is good but im still mad about homefront

OJ_the_LION
OJ_the_LION

I've yet to play Armageddon, but that's largely because I'm having trouble finishing Guerrilla even after all this time. I don't know, I enjoy the game when I play it but I have trouble keeping motivated to finish it despite the fact that I finish almost every game I play. I think there may be too many side missions and not enough main missions. In any case, I'm looking forward to Saints Row 3. Saints Row 2 was one of my favorite games this generation, a refreshing blast of fun chaos after my irritation at GTA4 going "realistic" at the cost of fun. Hopefully THQ has a better quarter soon, they're one of the few major publishers not doing anything actively manipulative or screwy to their customers.

PNB
PNB

@axlroselm Because DoW is good the way it is and we don't need a game to simply replace it, DoW2 is great, extremely competitive, has a steep learning curve and plenty of ways to be played, it's probably the RTS with the biggest focus in the tactical aspect out in the market, I'm glad they didn't do the same blizzard did with SC, same ****, different smell, and the worst part is people bought that same crap when there was nothing wrong with the first, basically stealing willing consumers, I hate humanity.

bodigalhun
bodigalhun

no word on Homeworld 3?. been waiting for it since the first game. still playing and waiting

axlroselm
axlroselm

THQ is a respectable company. through this years they release good games like Red faction 1, COH and DOW 1 and i have high hopes for Space Marine. but i think they screw red faction series with guerrila and armagedon. also i dont like the the way DOW 2 changed. change is good but when needed. every one liked DOW 1, why change gameplay? if THQ dont do innovation for the sake of innovation, im sure that they will make huge profit because they desere it.

ioannisdenton
ioannisdenton

THQ released darksiders. and now darksiders 2 . so kick ass! we ll buy darksiders 2!

Bate_Yasho
Bate_Yasho

The game was pathetic . How they expect any better.

j0abell
j0abell

Why is THQ so hit or miss? The first Dawn of War was one of the best RTS games I know of. The sequel was a totally different type of game, and IMHO, terrible. Same with Red Faction. First was a success, second was terrible, Guerrilla was great, then Armageddon was terrible... It's like they expect an IP to do well, even if they hire a bunch of devs at random to make sequels that are nothing like the originals people loved.

niklev83
niklev83

@claytoma ... What is wrong with you guys? Red Faction has been a masterpiece since the first game... I definitely agree that they screwed up on the second a bit, but this was a game that I kept close to heart because it innovated and as I remember it created a great atmosphere and story to lure you into its world. I love this game, it is one of the best game series I have in my HUGE gaming collection.

niklev83
niklev83

Why point at Red Faction??? This game was amazing and in some aspects even better than Guerilla!!! This hurts me as I am a fan of Volition and Red Faction... Hope this wont stagger the development of possible future faction titles... man!

Santesyu
Santesyu

sigh remember the days when THQ was actually making good games anyone remember WWE: Here comes the pain? Now THQ has evolved into this.. THQ might aswell change there names because they aint the THQ I once knew.

DAMSOG
DAMSOG

Whoever is feeding developers rubbish ideas needs to stop....no I mean it stop....

jfn2
jfn2

HAHAHAHAHA!!!! the ufc trainer DELAY hurt profits? how about that the game sucked from the getgo? of course, THAT has nothing to do with it. release some QUALITY games, THQ, and your profits won't suffer. ask any gamer what AAA title you've released this year.... red faction? don't make me laugh harder than i already am. please.

Minarvia
Minarvia

I think Red Faction: Armageddon didn't sell well, because it copy way to much from Dead Space. First the main character in both games are engineers, second both games is a locater tell you where to go if you couldn't figure that out. Third both games had something that all you to pick up objects from afar and throw things, in Dead Space it was telekinesis in this game is was the magnetic gun, also both items had unlimited power. Both games had aliens that were sealed away by some artifact, also the aliens in Red Fraction look a lot like the enemies in Dead Space. I could go on with the similarities between the two games, but I think I would run out of the space.

atlas9026
atlas9026

as far as im concerned video games aren't worth my money these days especially with all the dlc it feels like im buying just a little bit bigger version of a demo. These big time companies think people are fools and that people will buy anything, which in most cases are true but there's only so much $h!t you can put out before people start to smell the odor. Companies really need to expand more in diversity of games, not expand the franchise of one title. Why buy the next major franchise title when next year the same game will be out with "more" items that they intentionally left out of this years one? paaallleeease gimme a break im not going to pay a hundred dollars for a game (said and done with all "bonus" content ) id rather download the $h!t and bankrupt the company to stop them from putting out the same stuff over and over again while bending the consumer over and stuffing them full of franchises. Indie games are the future simply for the amount of love that goes into them, and so i feel that they are worth my money. As for pc games im back to doom on skulltag fing classic never gets old, put somthing good out and i'll consider it.

Rayzakk
Rayzakk

Look at the bright side. At least they aren't in as much debt as the government.

claytoma
claytoma

This is because Red Faction has always been mediocre at best. They should have quit after the second.

fobbs25
fobbs25

THQ is better than some of the other more pathetic publishers like EA/Ubisoft/Activision, but they are still following their blueprint, which will lead them down the road paved with poor quality games, and low consumer support. I was a big fan of THQ a year or 2 ago, so i have some hope thay can produce something decent. Unlike EA, which lost my hopes around 10 years ago. I loved Red Faction Guerilla. It had an enjoyable single-player(which had more than 1 colour douche), and an amazing/groundbreaking Multiplayer. Armageddons only addition is the new story, but they take out everything else.

attentaeter85
attentaeter85

Patrice desilets will save you! He sure made Ubisoft into what it is today.

starscreamPL
starscreamPL

THQ I`m counting on you. ;) Dawn of War 2 is my favourite RTS of ALL time. Homefront was a surprise - multiplayer of this game rocks. Red Faction Guerilla was good, but Armageddon was a step in a wrong direction, that`s why I didn`t buy it. Warhammer 40k Space Marine is a day one buy for me though. Probably I will get both PS3 and PC versions, I`m very excited about this game. Don`t give up. ;)

dr_jashugan
dr_jashugan

Bring back the glory of the first Dawn of War, please. 8)

ElFlechero
ElFlechero

does thq make any good games? really? I can't think of any. I recently played the first few levels of RF guerilla, and I couldn't get past the BROWN. An open world game first needs a world with more than one color for it to be interesting to explore. I think Patrice Desilets made the biggest mistake of his life leaving Ubisoft, considering THQ's track record. Why would they suddenly be able to turn out a hit game, when they never have before? I don't see how they're even still in business.

runstalker
runstalker

Dear THQ: If you want a huge rebound in the years ahead, put all your resources behind THQ Montreal and the Patrice Desilets project. The golden touch. That is all.

AceMarine45
AceMarine45

@gix47 Warhammer 40K has one of the most loyal following i have ever seen in the video game culture. If you like warhammer, u will buy warhammer space marine. I can guarentee THQ will make money off warhammer space marine, same goes with Saints Row

Chico_Azteca
Chico_Azteca

hopefully Saint's Row 3 will give them a good profit