THQ Misses Targets News

Californian publisher THQ has today confirmed losses of over $191 million for the third quarter of fiscal 2009, which ended on December 31st 2008, despite the launch of several 'high-quality' titles like Saints Row 2 and WWE Smackdown vs RAW 2009.

News of the net losses comes as THQ revealed that net sales also dropped during the three-month period, from $509 million in the third quarter of FY 2008, to $357 million.

"We delivered high quality games to market this holiday season but fell short of our revenue and profit targets in this challenging environment," said Brian Farrell, THQ president and CEO. "We are taking highly targeted actions with the objective of investing in games with the highest franchise potential and returning to profitability. We have executed on our previously announced plan to reduce our cost structure by $120 million. Given continued economic weakness, we plan to reduce costs by an additional $100 million."

"Established franchises like Saints Row and WWE SmackDown vs. Raw, as well as new franchises such as de Blob and Big Beach Sports for the Nintendo Wii, give us confidence in our strategy going forward," said Farrell.

The publisher is due to launch several titles over the next few months, including Relic Entertainment's Warhammer 40K: Dawn of War II and Rainbow Studios' Deadly Creatures, as well as WWE Legends of Wrestlemania, and 50 Cent: Blood on the Sand.

"We have several compelling games set to launch in the coming months, including Warhammer: Dawn of War II, WWE Legends of WrestleMania, our first games based on the popular Ultimate Fighting Championship, and Red Faction: Guerrilla...In this environment, we are focused on what we can control: delivering high quality products, investing in a targeted product pipeline, and aggressively managing costs."

THQ also confirmed that 600 jobs, nearly a quarter of its workforce, are to go as the publisher tries to restructure its business.