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THQ Loses $136.1m in the Year to March 2011, Udraw to X360/PS3 - News

by VGChartz Staff , posted on 03 May 2011 / 5,268 Views

Earnings week for the March 2011 quarter and March 2011 year begins anew this week. Results for THQ have just come in, and they are in generally in line with projections. The company did meet its forecast of $245-$260m in revenue on a non-GAAP basis for the quarter, on revenue of $248.6m. On the other hand, with extra expenses included, revenue on a GAAP basis reached only $124.2m for the March 2011 quarter. THQ had forecast profit of $3.4m to $10.2m for the March 2011 quarter on a non-GAAP basis - and the company had a $10.5m profit by that method of accounting. Using the GAAP method of accounting though, THQ had a $44.1m loss for the quarter. On a non-GAAP basis THQ revenue and profit increased about $50m and $5m respectively from the March 2010 quarter, but on a GAAP basis revenue dropped $75m and profit fell $35m compared to the March 2010 quarter.

For the year to March 2011, THQ revenues were $665.3m, down from $899.1m in the prior year on a GAAP basis. Yearly losses in the March 2011 year were $136.1m, substantially worse than the $9.0m loss in the March 2010 year on a GAAP basis. Profit for the year also fell substantially on a non-GAAP basis.

THQ was pleased with its results, and stated: 

"THQ posted strong fourth quarter results primarily driven by the success of Homefront," said THQ President and CEO Brian Farrell. "We have already shipped 2.6 million units, a solid start for this new franchise, which kicks off the strongest pipeline of AAA core games in our history. We also continued to grow the uDraw franchise with the successful international debut of this compelling new tablet. Today, I am pleased to announce that we plan to bring exclusively designed uDraw GameTablets to Microsoft Xbox 360 and Sony PS3 platforms this holiday."

Farrell continued, "We expect to generate significant growth, profitability and cash in fiscal 2012, driven by the latest installments of multi-million unit selling franchises, Saints Row, Red Faction, Warhammer 40,000, MX vs. ATV, UFC, WWE, and uDraw. We are creating a digital ecosystem for each of these games that will continue to keep consumers engaged and generate additional revenue opportunities beyond the initial retail sale. We also continue to aggressively invest in our digital initiatives, including online social and mobile offerings as well as our Warhammer 40,000: Dark Millennium Online MMO."

As of March 2011, THQ has shipped 2.6m units of Homefront for X360 and PS3. The company says that in March 2011, Homefront was the #1 title on X360 and the #3 title on PS3, in the US and the top five European markets. The game also remains the best-selling week-one new console release in 2011 in the UK.

THQ also provided a breakdown of game revenue by platform for the March 2011 quarter and the March 2011 year.

- Of the $665.258m in revenue generated for the March 2011 year on a GAAP-basis, $220.14m (33.1%) of the revenue was generated on Wii. After that, $128.647m (19.4%) of yearly revenue was generated on X360, $115.970m (17.4%) of revenue was generated on PS3, $97.869m (14.7%) of revenue was generated on DS, $43.231m (6.5%) of revenue was generated on PC, $29.777m (4.5%) of revenue was generated on PSP, $24.194m (3.6%) of revenue was generated on PS2, and the remaining $5.43m (0.8%) of revenue was generated on wireless platforms.

- Compared to the previous fiscal year all platforms fell except for Wii on a GAAP revenue basis ($220.14m from $137.219m).  X360 sales dropped from $237m to $129m, PS3 fell from $200m to $116m, PS2 fell from $53m to $24m resulting in overall console revenue falling by $138m - even with Wii jumping by $83m. DS also fell from $142m to $98m, with PSP dropping from $45m to $30m. Wireless fell from $11m to $5m, and PC dropped from $72m to $43m.

- The math works out to about 11m Wii games, 5.4m DS games, 4.3m X360 games, 3.9m PS3 games, 1.6m PSP games, and 1.3m PS2 games sold for the year, based on roughly what THQ would get for each game sold. THQ thus sold 27.5m games in the March 2011 year for Nintendo, Sony, and Microsoft platforms, compared to 34.7m games in the March 2010 year - which is the main reason revenue and profit is down even with the company selling about 3m more Wii games.

- Quarterly trends were similar to yearly trends. In the March 2011 quarter, Wii games were $46.546m of THQ's revenue (37.5%) as without Homefront the company had virtually no titles sell well on the HD platforms in early 2011. X360 revenue was $24.193m (19.5%) for the quarter, PS3 revenue was $16.049m (12.9%), PC revenue was $14.987m (12.1%), DS revenue was $11.969m (9.6%), PSP revenue was $5.495m (4.4%), PS2 revenue was $4.361m (3.5%), and wireless revenue was $637,000 (0.5%).

- THQ revenue dropped substantially in the March 2011 quarter compared to the previous March quarter for most platforms. Wii grew to $47m from $24m, but X360 fell to $24m from $55m, PS2 fell to $4m from $5m, PS3 fell from $46m to $16m, DS fell from $29m to $12m, PSP fell from $7m to $5m, PC fell from $27m to $15m, Wireless fell from $2m to $1m.

- The math for the quarter works out to about 2.4m Wii games sold along with 800,000 X360 games, 670,000 DS games, 530,000 PS3, 260,000 PSP games, and 220,000 PS2 games. Thus THQ sold about 4.9m games for the quarter, down from 6.8m games in the March 2010 quarter.

Keep clicking VGChartz throughout the week - plenty more data is coming from video game companies all over the world.

Contact VGChartz at jmazel@vgchartz.com


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19 Comments
WiseOwl (on 09 July 2011)

Nintendo no longer need THQ now that they showed the Wii-U.

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*Sound Of Rain (on 04 May 2011)

Well...uDraw should remain exclusive on Wii...Without Nintendo uDraw would have never came out...

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SecondWar (on 04 May 2011)

Think they would be better NOT making this 'uDraw tablet' and instead making uDraw games for actual tablets.

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bmmb1 (on 04 May 2011)

@immortal, actually it is good for Udraw buyers if it goes multiplatform. The more people own it, the more games THQ will create for it.

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bmmb1 (on 04 May 2011)

I'm fine with udraw (and any game for that matter) not remaining a Wii exclusive, but from a business perspective I believe it is a serious mistake. That said, since THQ have already made their mind up to only create casual games for the Wii, I couldn't care less if they make business mistakes...

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adsl (on 03 May 2011)

I'm glad more people will have the opportunity to play uDraw games.

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primogen18 (on 03 May 2011)

They need to take a page from mysims, deblob, rabbids, michael jackson, NBA jam, etc , these games will not sell on PS3/360 and porting them from Wii turned out to be a big mistake. Let them on the system where it makes money and costs less money instead of dumping the extra developing costs into ports that go nowhere. Of course we never hear about THOSE losses and crappy sales...

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primogen18 (on 03 May 2011)

maybe 100k on both systems combined should be expected

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primogen18 (on 03 May 2011)

They seriously cannot be talking about losses and porting something like Udraw to PS3/360, it's like they took a page from how to lose money to come up with a plan on how lose even MORE money...

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luiaots (on 03 May 2011)

It could be considered backstabbing because nintendo helped them produce the tablet. If nintendo wouldn't have helped then it would be different.

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oniyide (on 03 May 2011)

@immortal why are they backstabbing because they choose to put their product on another system?? Is the Wii obligated to be the only system to have this???

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usrevenge (on 03 May 2011)

saints Row isn't out yet, which will probably bring in lots of money for the company.

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Immortal (on 03 May 2011)

You've got to be kidding me! A partially Nintendo-developed device is going on PS360? Thanks for backstabbing us, THQ. I wish you the fate of the CDi, ;P.

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Yakuzaice (on 03 May 2011)

Sorry for the triple post, but why is the GAAP/non-GAAP revenue so different this quarter? Last year they were nearly identical. I am guessing it is deffered revenue? It seems that they deffered half of their revenue for the last quarter.

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scapegoatsqueal (on 03 May 2011)

Pretty pathetic. Looks like my old friend SEGA won't have much competition this quarter either!

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Yakuzaice (on 03 May 2011)

Ah, you were doing the math based off GAAP revenue. It seems that the non-GAAP revenue probably paints a better picture of units shipped if you wanted to extrapolate.

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Yakuzaice (on 03 May 2011)

I feel like I am missing something. So Homefront shipped 2.6 million copies as of March 2011, but then the article says there were only 1.33 million PS3/360 games shipped for the quarter.

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Hephaestos (on 03 May 2011)

oh yeah saint rows and an MMO... high investment projects indeed.

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Hephaestos (on 03 May 2011)

i don't get how these companies lose so much... increased costs of projects yet unreleased? (so investment and not actuall loss??)

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