THQ makes $430 million loss

Written by Joe Martin

May 7, 2009 // 10:43 a.m.

Tags: #credit-crunch #dawn-of-war-2 #loss #profit #sales #thq #thq-makes-usd-430-million-loss #warhammer #wrestlemania

Yesterday, Electronic Arts posted a net loss of more than USD 1 billion. Today, THQ reveals how much it lost in the last financial year too - and though the numbers are nowhere near as dramatic sounding, it still isn't good news.

THQ reported net sales of just USD 830 million, down from more than USD 1.3 billion the year before and causing a net loss of around USD 431 million. The loss was apparently minimised by the success of a few key titles, mainly WWE: Legends of Wrestlemania and Warhammer 40K: Dawn of War II. Dawn of War II was especially successful, proving to be the best-selling PC game of last year in a number of territories.

Saints Row 2 was a good performer for the publisher too and the company is keen to capitalise on the continued success of the series with more games.

Moving forwards THQ plans to target core gamers more aggresively in an effort to generate more profit, with THQ's Brian Farrell saying that the company will be developing mainly for a select number of popular IPs in a press release. In other words; more sequels!

"We have taken decisive actions to achieve our cost saving objectives, eliminating USD 220 million in cash expenditures while at the same time implementing a focused product strategy, said Brian." We are investing in the brands and products with the highest potential to drive THQ’s long-term profitable growth."

THQ's next big release is going to be Red Faction: Guerilla Wars on the PC, PlayStation 3 and Xbox 360. The physics-based shooter will launch in June and you can check out our hands-on preview of Red Faction: Guerilla Wars for more info on the game. Any other thoughts you have, drop 'em in the forums.

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