THQ fiscal report – cost cuts, streamlining, and realignment to come
THQ today announced its financial results for the fiscal second quarter which ended in the 30th of September. Net sales dropped, now they’re not setting their sights too high with a reduced financial outlook and a big realignment.
THQ today announced its financial results for the fiscal second quarter which ended in the 30th of September. Net sales dropped to US$ 164.8 million, compared to last year’s US$ 229.3 million. Now they’ve reduced their outlook for March 2009, and announced a big business realignment.
It’s not all bad news for THQ, they did manage to hit a few home runs. They’ve made others, but here’s to name a few:
- Shipped more than 2 million units of Saints Row 2 (Xbox 360, PS3) globally in its first two weeks and achieving a Metacritic rating above 80
- Established a new Wii franchise, de Blob, also rated above 80 at Metacritic
- Strengthened company portfolio and enhanced online business
In response to its current situation, THQ is now taking a new direction. It will now be focusing on fewer, higher quality titles. As such, they’ll be pulling the plug on some on-going projects as well as cost-cuts and streamlining. THQ President and CEO, Brian Farrell, leaves us with this statement.
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 the fiscal year 2010.
More lay-offs and less games? We’ve been seeing this trend a lot lately. Developers are cutting down on less-popular games and are focusing only on bigger titles. The gaming industry has it bad right now. Hopefully, the sorry state of affairs will not be said about the games. If you want to read up on THQ’s report, follow the source link below.
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