THQ has posted a loss of $115 million for the second quarter of this year and been forced to lay off staff.
The economic climate isn't making things much better for publishers like THQ, who have posted increased losses this year and been forced to lay off significant numbers of staff. The move has also delayed Red Faction: Guerilla
and Darksiders: Wrath of War
until March next year, at least.
According to the financial results for the company, as posted by GI.biz
, THQ lost more than USD $115 million (GBP £72 million) in the second quarter of this year - a significant increase from the USD $7 million (GBP £4.3 million) loss for the same period last year.
As a result of the losses THQ has confirmed plans to close five internal development studios, cancelling a number of titles still in development. The move sees the termination of 250 people - around 17 percent of THQ's total workforce.
THQ claims that the move will allow it to refocus development on fewer, more successful titles and avoiding taking risks on the cancelled but unannounced games.
"We are aligning our business to be more competitive in key consumer segments and address the current business environment,
" said CEO Brian Farrell in a statement to the press.
"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.
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