While most publishers in the video game industry are reporting decent to good earnings in Q1 of 2008, the story is a bit different for THQ as it dipped well into the red zone with triple the losses it incurred in the same period last year.
THQ finished the quarter with US$ 137.6 million, US$ 33.1 million better than last year's total. A lot of this can be credited to multiplatform hit WALL-E which was developed in cooperation with Pixar. The IP sold over a million copies despite lukewarm critical reactions.
As good as the WALL-E efforts went, development costs sapped up the earnings and gave THQ a staggering US$ 27.2 million in deficits. This is triple of last year's losses, but THQ isn't fazed just yet.
CEO Brian Farrell said in a statement that THQ is still well on track to post earnings this year with a good number of their products still to come. Flagship franchises such as WWE Smackdown vs Raw 2009 and Saints Row 2 are waiting on the wings, and games like Red Faction Guerrilla, Darksiders: Wrath of War, and Legends of Wrestlemania are expected to do well.
THQ stands firm on its projection of US$1.15 billion to US$1.175 billion in revenues by the end of the fiscal year. We'll see if that statement can vindicate the game maker when the dust settles.
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