Despite a healthy increase year over year for the video games industry a lot of publishers are struggling to achieve profitability. THQ is amongst those and despite impressive sales for Saints Row 2 and WWE Smackdown vs Raw 2009 the company lost $9.6 million during the last quarter. For the first nine months of their fiscal year they have posted a staggering $191.8 million (compared to a profit ($15.5 million profit same period last year).
The company has already announced closure of certain studios and they are cutting spending in fiscal 2010 by $220 million with 600 people losing their jobs. THQ have also announced a slightly altered strategy, where they are focusing on fewer big titles for the hardcore gaming audience (such as Saints Row 2, Darksiders and Red Faction Guerrilla), while establishes themselves as a major player in fighting games (UFC and WWE). THQ are also hoping to cash in on the kids, and the casual market while they mention Company of Heroes Online and Warhammer 40,000 MMO as keys to penetrate the online market.
Despite a warning that their fourth quarter (Jan-Mar 2009) will be well below expectations - THQ remain optimistic about their long term plans. But losing money at this rate they won't have very long to turn things around...
Here are a few sales figures mention in their report:
Saints Row 2 more than 2.6 million copies shipped
WWE Smackdown vs Raw 2009 more than 4 million copies shipped
de Blob approximately 700000 copies shipped
Big Beach Sports more than 1.2 million copies shipped