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THQ slashes losses, Warhammer 40K: Space Marine due by April 2011

By Tom Magrino, GameSpotPosted Nov 4, 2009 2:01 pm PT

UFC 2009 publisher sees revenues dip during July-Sept. quarter, but cuts losses from $115.3 million to $5.6 million; shares jump more than 14%; Homefront also slated for next fiscal year.

THQ's expansion into the mixed martial arts arena did wonders for the publisher's first-quarter bottom line upon its release in May. Today, THQ reported its results for the second quarter (three months ended September 30), and while UFC continues to perform, the fighter has begun to show signs of slowdown.

UFC has no intention of tapping out.

During the July-September window, THQ said revenues fell to $101.3 million, down from $164.8 million generated during the same time last year. The publisher also posted a $5.6 million loss during the quarter, a figure that stands as a significant improvement over the prior-year's $115.3 million shortfall.

According to THQ president and CEO Brian Farrell, the earnings reflect the company's shift toward a smaller, more focused product pipeline. Following a $220 million cost-cutting strategy enacted earlier this year, THQ said that it would realign its product portfolio to emphasize quality over quantity, as well as to halve its yearly core game slate.

THQ did not provide updated sales figures for UFC 2009 or its other recent standout release, Volition's Red Faction: Guerrilla. However, the publisher did note that UFC 2009 remains a top-five best-selling Xbox 360 and PlayStation 3 game during the first nine months of the year.

The earnings report has struck a favorable chord with investors. THQ's stock has jumped by 14.5 percent in after-hours trading on the NASDAQ stock exchange to $5.74 as of press time.

[UPDATE] Following THQ's earnings announcement, the publisher held a post-earnings conference call with analysts and investors to discuss the results. As part of that call, THQ's Brian Farrell said that the publisher has lowered its industry outlook from flat year-over-year sales to a low- to mid-single digit loss.

Farrell also provided a glimpse at the publisher's 2011 fiscal year, which runs from April 1, 2010, to March 31, 2011. According to the executive, THQ will release new installments in its UFC and WWE franchises during the period (despite a licensing dispute with WWE partner Jakks Pacific that is still unresolved). The publisher also plans to release Warhammer 40K: Space Marine, the series' first outing on the Xbox 360 and PlayStation 3, as well as Kaos Studios' Homefront during its 2011 fiscal year.

49 Comments

  • andy_lyall

    Posted Nov 6, 2009 4:22 am PT

    @baystatethrashr
    If you're talking about that video that got leaked a year or so ago that looked like a 3rd person action game with directors commentary over the top. From what I've gathered about all this that game was being made by THQ australia and had nothing to do with Relic. It's THQ who own the GW rights and they reassigned the project. The THQ Australia game isn't being made anymore.

  • Full_Of_Stars

    Posted Nov 6, 2009 1:27 am PT

    If they want easy cash just put Warhammer 40K: Space Marine on pc

  • Humorguy_basic

    Posted Nov 5, 2009 4:05 pm PT

    @masterlu they are fair comments and as I say, you are entitled to your opinion, but even though PC games sales are down 30% they are still 40% of the market (because they used to be 70% of the market), and so nearly half the market is being ignored. So the industry is number one to blame, the gaming media second, and gamers themselves third. If console gamers started saying 'support the PC' and also were more inclined to complain about dumbed down games, then I think we might see quicker change. But as it is, with it being a well known fact that entertainment businesses do not suffer unduly in a recession, figures like Konami sales down over 80% is giving us a message that we, the gamers as well as the gaming media and industry as a whole need to take on board. Also everybody needs to think outside the box, so for example a company that supplies parts for Sony consoles have seen sales drop 28% in the last 2 years...... Why do you think there was a price cut? Sales are down worse than people think, because we have a media that is scared to tell us anything but that all is wonderfully well, with little snippets of bad news to convince they give us all the news when they don't - by a long way!

  • masterlu

    Posted Nov 5, 2009 2:28 pm PT

    @Humorguy_basic In light of recent headlines, I stand corrected. However, I really don't think the market for games is the same size as it was 15 years ago... I seem to recall several statistics from the ESA showing quite a remarkable rise during the last decade despite the current temporary downturn... I've been a gamer since the NES and a PC-elitist since the late nineties, and I would definitely agree that consoles have retained some of the unfortunate "gaming is something you are supposed to grow out of"- aura and an overall much more casual feel but still I don't think this is because newer games are necessarily WORSE than older games. But yes, since the console market nowadays is far greater than the PC market, there is bound to be some concessions in the games made for several platforms. Games like Baldur's Gate and other heavier RPGs as well as (real-time)strategy games and a few other more "grown up" genres (as opposed to platformers and the like) are traditionally the forte of the PC, for obvious reasons. A bigger console market naturally means they migrate to consoles and ergo are also developed primarily for consoles and thus seemingly dumbed-down. But I still don't think this would explain the comparative decline of the PC as a gaming platform.

  • Humorguy_basic

    Posted Nov 5, 2009 11:18 am PT

    @ masterlu - I have been in gaming long enough to know what sales were 10-15-20 years ago. And sales are lower on PC by about 30% and video game sales are levelling of. (we all hear about Wii losses and how PS2 sales almost match PS3 sales.) Just look at today's headlines: Ubisoft priojecting a loss, Konami 22.5% sales drop. 360 sales down, etc. At the same time we get a huge growth in retro game downloads from the various console services, we see that Steam sells more retor games than modern games, we see the success of GOG.com and we have over 5 million DOSBox downloads. All this an indictment on modern gaming. I have also been a gamer long enough to make an educated judgement of what games are like today. With the advent of the multi-format market, about 5 years ago, more and more games are written for a console market that is BELEIVED to be younger and dumber. A perfect example has just appeared, Look at the PC version of Dragon Age compared to the console versions. the console versions are more action orientated, demand less tactics in battle and are generally closer to action-RPG's with much leess 'thinking' involved. We see with Bioware changing to console first PC second how Jade Empire and Mass Effect were much more action orientated and much less RPG than what came before, when they were PC orientated, in the form of Baldur's Gate and Neverwinter Nights, etc.

  • AjaxsLastStand

    Posted Nov 5, 2009 11:12 am PT

    I enjoy 40K. It's got a lot of history to it and a lot of good writing and material. Dawn of War was a fun RTS, and the table top is very enjoyable. My problem, though, as I've gotten older, is that it's really overdone on the "DARK GRIMNESS OF TEH FUTAR!" Seriously, I think we all get it by now. Sure. It's the future, and people die at an alarming rate. But Jesus, is this some goth kid's attempt at literature? Can't it just be a war story where we already know that it's a little depressing, but we don't have to harp on it?

  • mirriorman

    Posted Nov 5, 2009 10:42 am PT

    warhammer has a great story line and the action would make an brillant game if only they made a good action game this might be it i hope

  • GrumblingElite

    Posted Nov 5, 2009 9:35 am PT

    As with anything that needs changing on the internet, sign here to get Space Marine on the PC! http://www.petitionspot.com/petitions/spacemarine

  • monson21502

    Posted Nov 5, 2009 8:58 am PT

    i just got ufc 09 for 10 bucks at the pawn shop

  • Titch-X

    Posted Nov 5, 2009 8:39 am PT

    @Rikuide_Furame

    Space Marine isn't an RTS it's a third person action game.

  • vivac

    Posted Nov 5, 2009 8:36 am PT

    for those looking for space marine video(gameplay)

    gameplay footage:
    http://kotaku.com/5045678/first-warhammer-brawler-footage-looks

    enjoy

  • Rikuide_Furame

    Posted Nov 5, 2009 8:13 am PT

    I enjoyed the original Dawn of War game - the Warhammer 40K universe is rich in character which is a major plus for me.

  • baystatethrashr

    Posted Nov 5, 2009 8:09 am PT

    @andy_lyall

    watch gameplay videos of space marine, it looks nothing like DoW2

  • andy_lyall

    Posted Nov 5, 2009 7:24 am PT

    Space Marine uses the dawn of war 2 engine. In fact, every Relic game in quite some time uses that engine. It's called Essence.

  • fathed102

    Posted Nov 5, 2009 6:28 am PT

    The trailer for space marine is no where what the actual game is going to end up looking like. I think they threw that trailer together using the Dawn of War 2 engine.

  • gamer_96

    Posted Nov 5, 2009 6:10 am PT

    I am not fan of UFC

  • LosDaddie

    Posted Nov 5, 2009 5:40 am PT

    UFC rocks! My 2nd fav fighting game behind SFIV

  • holypro

    Posted Nov 5, 2009 5:19 am PT

    sounds cool

  • masterlu

    Posted Nov 5, 2009 4:45 am PT

    @Humorguy_basic I'm not quite sure about that "shallow games" thing, fact is that we are getting many, many, many more games every year now than we did a number of years ago. The fact that only AAA-titles get any press worth mentioning is a result of this, and as a result of the way the industry works, many of the AAA titles are going to be slightly bland and uninspired. The chances of scoring a big hit are slim at best, but once you do you would be dumb to throw it all away by making another game that is completely different, thus most games that sell well will look like each other. But I wouldn't say games today in general are any more shallow than before, if anything game-makers have started paying much more attention to things like storytelling, worldmaking and moral choices in games.

    I do think you're right about the change of what and how we play, but I see it as evolution rather than revolution. Games that are two years old are no longer considered ANCIENT, as two-year-old games were considered, say, two years ago. The rate of technological advance has slowed slightly, especially when it comes to graphics, thus making slightly older games equally viable options. ...and that thing about game sales "slowly declining" is just complete rubbish, it's one of the fastest growing industries in the world.

  • brian_13un

    Posted Nov 5, 2009 4:16 am PT

    Cool can't wait for Warhammer 40K

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