THQ Rethinks Strategy

06 Nov 2008 at 01:33:56 by Paul Younger

THQ released its quarterly earnings report confirming company layoffs and a strategy rethink.

THQ has reported sales of $164.8 million, down $229.3 million for the same quarter last year, and a net loss of $115.3 million.The main highlight from THQ's report is that Saints Row 2 received a MetaCritic rating of above 80. It's hard to believe that this is their main highlight and proves that THQ are going to have to work a lot harder to release more quality products.

As part of their future plans, THQ state they "plan to focus on fewer, higher quality titles". There is also significant restructuring with the cancellation of several titles that were in development but had not been publicly announced, the closure of five studios and job losses of 250 people (17 percent of its studio staff).

“We have made substantial progress in improving product quality and innovation, as evidenced by recent shipments of several well-reviewed games including de Blob and Saints Row 2,” said Brian Farrell, THQ president and CEO. “We are aligning our business to be more competitive in key consumer segments and address the current business environment. We expect the combination of a much more focused and competitive product line with a more efficient cost structure to put THQ back on the path to growth and profitability in fiscal year 2010.”

The global economic climate is starting to hit th videogame industry and THQ have to step up their game by releasing those AAA titles.