THQ Losses Drop, Delays Key Titles to Ensure Quality - News/ 5,876 Views
THQ has reported on its second quarter of its 2013 fiscal year, which ended September 30, 2012. THQ posted net sales of $107.4 million, down from $146.0 million year-over-year. Despite the drop in revenue, THQ net losses did decrease to $21.0 million, from $92.4 million last year. THQ digital revenue was at $19.1 million, a 34 percent increase compared to the $14.3 million a year ago.
Darksiders II sales have failed to meet expectations with shipment figures of 1.4 million units in the second quarter.
THQ has delayed three of its titles. South Park: The Stick of Truth is now planned to be released in early fiscal 2014, which begins April 1, 2013. The game was originally planned to be released on March 5, 2013. Company of Heroes 2 and Metro: Last Light have both been delayed to March, 2013.
"When I joined THQ the company made a public commitment to quality titles. We always expected that in some cases this would mean that more time would be needed to make sure that every title is of the highest possible quality," said Jason Rubin, THQ’s President. "Our fourth quarter releases are the first titles that I have had the ability to materially impact, and experience told me that the games needed additional development time to be market-ready."
Rubin believes that South Park: The Stick of Truth is one of the most anticipated titles of 2013. Metro: Last Light, he believes will wet new standards for visuals and Company of Heroes 2 will be given the time to make sure it lives up to its predecessors.
"THQ is excited about our position and pipeline of games beyond fiscal 2013, including the sequel for Saints Row: The Third, Homefront 2 and the as-yet-unannounced game from Turtle Rock Studios," said Rubin. "In total we have ten titles in development for fiscal 2014 and later, almost all of which are based on our own IP."
"Clearly, THQ faces a number of opportunities and challenges," added Brian Farrell, THQ’s Chairman and CEO. "I am confident about the opportunities that lie in our robust slate of games and in our studios. But we also face challenges operating with limited capital resources in the highly competitive market for games, and we are working diligently to resolve those challenges."