THQ Loses $30m, Ships 2.7m units of UFC Undisputed in Apr-Jun 10' - News
by VGChartz Staff , posted on 09 August 2010 / 2,697 Views
During the quarter ending June 2010, THQ revenues reached $149.4 million - down from $243.5 million in the previous June quarter. THQ lost $30.1 million during April-June, a big slide down from April-June 2009 when the company earned $6.4 million in profit. These figures are on a GAAP basis. THQ says "Fiscal 2011 first quarter net sales were driven primarily by sales of UFC(R) Undisputed(TM)2010. For the same quarter last year, THQ's net sales were driven primarily by sales of UFC 2009 Undisputed and Red Faction(R): Guerrilla(TM). No title comparable to Red Faction: Guerrilla was released during the first quarter of fiscal 2011," in explaining the downturn.
During the quarter, THQ says it shipped "approximately" 2.7 million units of UFC Undisputed 2010 for the X360 and PS3. Looking ahead, THQ believes it is positioned well for the next few months with its current game line up stating: "
THQ's comprehensive line-up of video games featured atthe Electronic Entertainment Expo ("E3") garnered significant critical acclaim, including numerous award nominations for upcoming titles such as Homefront(TM), Red Faction(R): Armageddon(TM), WWE(R) All Stars(TM), UFC Undisputed 2010, Company of Heroes(R) Online, Warhammer(R) 40,000(R): Space Marine(R), Warhammer(R) 40,000(R): Dark Millennium(TM) Online and Devil's Third(TM).The company announced an agreement with Tomonobu Itagaki's Valhalla Game Studios(TM) to publish the studio's premier video game title, Devil's Third(TM), for the Xbox 360(R) and PlayStation(R)3. The game is currently scheduled for release in THQ's fiscal year ending March 31, 2013.
The company revealed software currently in development for new hardware platforms, with The Biggest Loser Ultimate Workout for Kinect(TM) for Xbox 360(R); UFC(R) Fitness Trainer (working title) for Kinect and PlayStation Move; and de Blob(R) 2:The Underground(TM)and Saints Row(R)3 for the Nintendo 3DS(TM).
For the September 2010 quarter, THQ says it expects non-GAAP sales of $70 million or so - with a loss reported. During the year ending March 2011, THQ expects revenues of $845 to $865 million, with no significant loss or profit on a non-GAAP basis ("roughly breaking even").
In contrast to most other major Western publishers (save Ubisoft), THQ earned more revenue on Wii in the current June quarter than it did in the previous June quarter. Figures below are in thousands of US dollars. Percentages denote revenue contribution by platform. The revenue splits table is from this page.
| Three Months Ended GAAP | ||||||||||||||||||||||
| June 30, 2010 | June 30, 2009 | |||||||||||||||||||||
| Platform Revenue Mix | ||||||||||||||||||||||
| Consoles | ||||||||||||||||||||||
| Microsoft Xbox 360 | $ | 44,513 | 29.8 | % | $ | 97,454 | 40.0 | % | ||||||||||||||
| Nintendo Wii | 19,160 | 12.8 | 13,293 | 5.5 | ||||||||||||||||||
| Sony PlayStation 3 | 47,454 | 31.8 | 78,267 | 32.1 | ||||||||||||||||||
| Sony PlayStation 2 | 4,703 | 3.1 | 6,701 | 2.8 | ||||||||||||||||||
| Other | -- | -- | 5 | -- | ||||||||||||||||||
| 115,830 | 77.5 | 195,720 | 80.4 | |||||||||||||||||||
| Handheld | ||||||||||||||||||||||
| Nintendo Dual Screen | 19,666 | 13.2 | 20,020 | 8.2 | ||||||||||||||||||
| Sony PlayStation Portable | 4,341 | 2.9 | 5,033 | 2.1 | ||||||||||||||||||
| Wireless | 1,589 | 1.1 | 4,195 | 1.7 | ||||||||||||||||||
| 25,596 | 17.2 | 29,248 | 12.0 | |||||||||||||||||||
| PC | 7,953 | 5.3 | 18,533 | 7.6 | ||||||||||||||||||
| Total net sales | $ | 149,379 | 100.0 | % | $ | 243,501 | 100.0 | % | ||||||||||||||
With UFC sales declining and no Red Faction, THQ had significantly lower revenues on the HD systems this quarter than during the previous June quarter. Frankly though, with the drop-offs seen above, another Red Faction would not have stemmed the big drop off in PS3 & X360 software sales for THQ. Even with a million copies of Red Faction, HD software would have dropped off by over $50 million - THQ just had a bad quarter for HD software. PC, Wireless, DS, PSP, X360, PS3, and PS2 are dropped off for THQ year over year - leaving Wii as the only platform to see increased revenue. During the June 2009 quarter, THQ's biggest platforms were X360, PS3, DS, PC, Wii, PS2, PSP, Wireless, and Other. For the June 2010 quarter, PS3, X360, DS, Wii, PC, PS2, PSP and Wireless were the biggest platforms. Roughly speaking, revenue share increased from 13.7% on Nintendo systems to 26%, while PC + X360 revenue share dropped from almost 47% to 35%. Share on Sony's systems remained flat. On a revenue basis though the main culprit for the revenue drop is X360 - which dropped by over 50%, even though overall THQ revenue dropped by only 39%. PS3 revenues also dropped by 40% for the quarter, which didn't help.
Contact Vgchartz at jmazel@vgchartz.com
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Looks like this is a result of sales not covering/barely covering cost for the HD systems. 3rd parties have a tougher time since cost for games have skyrocketed to Hollywood levels!!!
Part of me wants to say that THQ shouldn't try to ship a new UFC every year.
But then THQ would have [i]nothing for this entire quarter.[/i]
sounds like THQ overshipped UFC by... a lot
