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THQ lays off 250 staff, posts losses

THQ lays off 250 staff, posts losses

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."

Disappointed by the delays, or did you totally see this coming? Let us know in the forums.

5 Comments

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Red 5 6th November 2008, 22:52 Quote
I find it hard to be sympathetic with THQ. I remember when seeing their name associated with a game was a sure sign that it was absolute garbage. Reading through the contents page of Super Play told me which reviews to avoid because they were painful enough to read, never mind playing the games.

Still, they somehow survived and I acknowledge they've come a long way over the years, even though they've taken a recent hit. Of course the newly unemployed is unfortunate.
Cthippo 6th November 2008, 23:54 Quote
So basically they're going to dedicate themselves to making samey crap because that's what people buy. Pity, but with both Stalker games they showed that they have a hard time releasing a decent product.
CardJoe 7th November 2008, 08:34 Quote
They didn't release STALKER Clear Sky because they had such a hard time with STALKER, IIRC.
Spaceraver 8th November 2008, 07:19 Quote
AFAIK warhammer40K was awesome.. Still play it.
Dreaming 12th November 2008, 11:49 Quote
Need more polish on their games but generally they're good. CoH, anyone?
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