THQ Posts Quarterly Loss as Sales Lag
By Shawn on Friday, November 2nd, 2007 at 12:04 PM PST In Game Companies, Games, THQ
THQ Inc announced a quarterly loss, in line with expectations, from a profit a year ago after warning it expected disappointing sales of titles like Stuntman: Ignition.
The video game Publisher last week lowered its second-quarter sales predictions to about $229 million from a previous estimate of $240 million based on lagging sales of Stuntman: Ignition and Juiced 2: Hot Import Nights.
THQ, whose recent games include Ratatouille, expects a loss of about about 11 cents per share from the previous estimate of a 10 cent profit. Analyst Mike Hickey of Janco Partners said he would focus on sales of THQ’s best-known games during the holiday season. The company is relying heavily on wrestling-themed WWE SmackDown vs. Raw 2008 and a sequel to the Cars game based on the Pixar movie.
THQ President and Chief Executive Brian Farrell said in a statement the company is looking to holiday sales of familiar titles to provide a boost figures.
“While we are disappointed with our recently revised fiscal 2008 financial guidance, we expect a solid second half to drive THQ’s 13th consecutive year of revenue growth,” Farrell said.
“We have already shipped ‘Cars 2: Mater-National,’ a sequel to last year’s top-selling family title, as well as games based on Nickelodeon’s popular Avatar, Nicktoons and SpongeBob characters,” he added.
via Reuters
no doubt about it, they need better games, and fast.