THQ posts $47 million loss

WWE and UFC publisher's shortfall in line with guidance; maintains forecast for the coming fiscal year.

Following Sony, Microsoft, Nintendo, Capcom, Sega Sammy, Square Enix and Electronic Arts, THQ has become the latest game publisher to report earnings for the quarter ending September 30, 2010. The three month period saw the suburban Los Angeles-based publisher take a loss of $47.0 million ($0.69 per share), up from a $5.6 million loss during the same period in 2009. Revenue was also down, falling to $77.1 million from $101.3 million the year prior.

Financially, THQ took it on the chin during its last quarter.

One reason for the lowered income was a lack of THQ releases during the quarter, which saw UFC 2010 Undisputed for the PSP and Darksiders for the PC ship. In fact, in its earnings announcement, the company did not name-check any releases during the period, instead drawing attention to current-quarter releases, such as WWE SmackDown vs. Raw 2011 and the new uDraw GameTablet. It also called out January-March 2011 titles, such as Homefront, WWE All Stars, de Blob 2, and the motion-sensing UFC Personal Trainer.

For the full fiscal year ending March 31, 2011, THQ expects revenues of $825 million-$855 million and a loss of $0.10-$0.20 per share for the full year, excluding one-time charges, such as restructuring costs, acquisition expenses, and stock-related compensation.

THQ also said its focus this fiscal year was to "position the company for growth" during its next fiscal year, which starts April 1, 2011. That will see the release of such high-profile titles as Saints Row 3, Red Faction Armageddon, and Warhammer 40,000: Space Marine. It will also see former Assassin's Creed creative director Patrice Desilets join THQ's recently announced Montreal shop to form a new internal studio.

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102 comments
methodium
methodium

[This message was deleted at the request of the original poster]

bricmpt
bricmpt

I say hooray! Anyone who makes a game that requires a 4 hour download on a DVD INSTALL (Dawn Of War 2 with Steam) deserves to go down. I am actually feeling better as i go to get my money back!

Dynamo11
Dynamo11

That sucks, THQ have made some of the better RTS' recently (CoH, DoW et al.)

-Dark_Palladin-
-Dark_Palladin-

I hate to be mean, but I'm actually not surprised to see THQ lose money. I've played the old Red Faction 2 and all of the Smackdown! Versus Raw games, and they were so buggy it was unbearable. The games are freezing up all the time, and you're charged to pay $10 for laggy multiplayer. No thanks.

dj-armeliaz
dj-armeliaz

THQ, release Space Marine as a game that blows up our brains with good game mechanics & action and you'll get money... trust me :)

BrokenArrow88
BrokenArrow88

A lot of people apparently only know THQ from UFC and SvsR, which are buggy/bad games i guess (I dont know, I never played them). I on the other hand, know THQ from the excellent and unique PC RTS's they produce, like Supreme Commander, Dawn of War and Company of Heroes. As they are one of the few companies that still produce good RTS's these days, I hope this setback will not affect the future of the company or any of their their developers, especially Relic.

CyberX115
CyberX115

I really hope this doesn't affect the release date for Red Faction: Armaggedon.

WCOFF3219
WCOFF3219

With the HORRIBLE job THQ did on SVR2011 it is not hard to believe they are in financial problems

Sgthombre
Sgthombre

@kobyjordan7 Not Warhammer 40K: Space Marine? That's a game that a ton people are psyched about.

kobyjordan7
kobyjordan7

Well, Homefront is this company's last chance.

XboxGuy1537
XboxGuy1537

Never been a huge fan of THQ, but Homefront looks fun.

D3thN1gh7
D3thN1gh7

Never really been a huge fan of THQ. Once in a great while a game will come along that I like from them but it hasn't happened recently. I had high hopes for Red Faction but they kind of killed it by switching to third-person view. Well, in any case though I do hope the company stays around.

SunOfAtom
SunOfAtom

@Smoothy08 I'd say Black Ops looks more generic than Homefront...

SunOfAtom
SunOfAtom

I enjoyed Evil Dead: Regeneration. Could you work with Cranky Pants again and make a new Evil Dead game, THQ?

champion737
champion737

Duderdave, the devs that made CoH are the same devs that made DoW2. As in, almost the same team.

Smoothy08
Smoothy08

They need a new fresh IP, Homefront looks ok but why would i want another generic shooter when i have Black Ops... Overall they make fun games that i enjoy playing which is shown in Saints Row & Red Faction.

AZ_sofa_king
AZ_sofa_king

they make games? i thought THQ is the surround sound system at movie theaters.

duderdave
duderdave

If they make a COH 2, PLEASE do NOT use the DOW2 model! COH has the right balance for the number of units in play, the view of the battlefield, and the scope. DOW2 has far too few units in play, the view is way too far away from the battlefield, and the multiplayer is closer to being a SC clone than COH imo. COH2 should not lose those things it has right because of DOW2 devs. Thanks! :)

TheClown24
TheClown24

@G2Megatron, Yeah most of their console stuff is terrible I will agree, but they own relic, who have made some of the best PC strategy games ever including Dawn of War, Homeworld and Company of Heroes. They also make the Red Faction games which are great, explodey fun and Titan Quest which was a fun albeit derivative RPG. They have also made some decent FPSs, Frontlines was ok-ish though not that great, and you can't forget about the fantastic Stalker series and the great Metro 2033. They also have Space marine coming out, which could be the first good 40k action game along with Red Faction: Armageddon which if Guerilla was anything to go by will be good fun. Still think they deserve it?

dRuGGeRnaUt
dRuGGeRnaUt

... if you build it.... they will come... ....still waiting...

G2Megatron
G2Megatron

Not surprise there. Each year the put out worthless crap games, especially the Smackdown games, ripping off thousands if not millions of people who buy these games. Honestly if they were to fold within the next year, I wouldn't shed a tear because they brought it all on themselves, putting out the same game with very few updates and little to no improvement with the same bugs and glitches that have been with the games from the very start, that still have not been fixed only makes it worse. And it justifies people's hatred for the company and comment about their lack of work ethic, it seems the just enjoy employing lazy workers who do the bare minimum to get by.

lamprey263
lamprey263

Honestly I thought they did pretty good with Darksiders, even though I thought it didn't look that interesting at all, and releasing next to Bayonetta (which was superb). Anyhow, I'm really looking forward to next year when THQ will release WH40K Space Marines, can't wait. Hopefully they'll make loads of money off of that, looks awesome.

Stealthos
Stealthos

Sadly it's not as simple as 'make good games.' It comes down to make games that sell. UFC 2010 was classed a 'good' game yet sold poorly. They had such a bad quarter release schedule it's a wonder how they have managed to maintain their share price. They may bounce back with SR3, WH 40k and RFA next year, but the true test for long term stability is whether they can create new franchises rather than yearly sequels (WWE, UFC). Let's all hope Homefront proves that. It's more important for them than any other game right now.

emaSephiroth
emaSephiroth

Maybe they should have saved their $$ and axed that Retribution expansion for that accursed DOW2 game and fully concentrated on their MMO and hopefully a much improved DOW3.

106473
106473

For the Emperor! 40k ftw.

CptAsbjoern
CptAsbjoern

They ought to make a Company of Heroes 2. That should get their sales up.

glassesboy
glassesboy

Some sound financial advice here...make good games, simple.

Rottenwood
Rottenwood

I'm not even sure what THQ puts out anymore, other than the wrestling equivalent of Madden where they apparently charge you $60 for last year's game with a new kind of table or piledriver. They've always seemed like a lowest-denominator publisher that cranks out safe stuff that young males love, so it's no wonder they're taking it on the chin in a weak economy.

thepowermonkey
thepowermonkey

A good tip when it comes to THQ games is to wait until after the 1st expansion has been out awhile then you can get the 1st game and the expansion for less then half the price of both of them. The expansions are always way over priced anyway IMO. Looking forward to giving Space Marine a spin. might be good. There is nothing else in their line up that even makes me take a second glance. I think They appeal more to an American market.

robtion
robtion

Yep definately have high hopes for space marine but the last Red Faction was also really good so maybe Armageddon will be worth picking up.

commander1122
commander1122

[This message was deleted at the request of a moderator or administrator]

coaltango
coaltango

the only games that r worth playing from THQ is the dawn of war series

Warlord_Irochi
Warlord_Irochi

@netolic Some companies have benefits (Sony, Microsoft, Activision) and some have looses (EA, Nintendo, THQ). I don't see this as a decline, but the usual year changes. Since I play videogames I saw a lot of companies come and go, this is the usual. :)

roddy72
roddy72

Homefront's premise compels me and I'm interested to see what they do with Saints Row 3. Also some of their future mysterious projects interest me as well.

tko6070
tko6070

red faction will be next years surprise hit i predict!

jollybest1
jollybest1

i will buy 40k space marine for pc but release the stupid thing, darksiders was great

LordRaymond
LordRaymond

One thing you should do THQ. Hype up Homefront as the best single player FPS story.

Devilslayer76
Devilslayer76

I hope Warhammer 40K Space Marine can help boost profits and I can't hardly wait for Warhammer 40K Space Marine to be released, I'm really excited for this one!

netolic
netolic

it looks like video game industry is in decline.....

Dark_Infinite
Dark_Infinite

TAKE THAT THQ ufc online is so laggy and unresponsive YA'LL FAIL

wiidsduelpack
wiidsduelpack

Studios must make better games that could compete with the greatness of COD. I'm only saying greatness because the sales of those games are huge. / About 20 million copies in xbox/ps3 more than 7 million copies in stimulus/resurgence which costs $15. Explains why many developers are going bankrupt and why EA can no longer survive on the 360 and solely stay exclusive to it. Now its on 360 and ps3./ Another example, Activision earned about $500 million on the first day. How many developers would want a 1/10 of that money per game

Vari3ty
Vari3ty

For once I'm actually glad to see a company lose money - THQ has been nothing but crap lately, and adding "online passes" into all of their games isn't going to make me support them anytime soon.