Troubled publisher THQ has announced a drop in revenue and an increased loss for its third fiscal quarter ended December 31, 2011, as better than expected performances from core games were offset by poor results for uDraw hardware and software.
Net sales dropped 2.9 per cent year-over-year to 305.4 million (£193.3m), while the company's net loss widened from $14.9 million (£9.4m) a year ago to $55.9 million (£35.4m).
Saints Row: The Third shipped 3.6 million units during the quarter, making it “the largest owned-IP launch in THQ’s history”, while WWE ’12 shipped over two million copies during the three month period.
THQ CEO Brian Farrell said the titles “demonstrate the strengths of THQ’s core gaming capabilities”. However, he added, “sales of the uDraw GameTablet and related software, and other titles in the kids, family and casual category were far weaker than anticipated, substantially reducing our financial results for the quarter.”
The publisher recently announced plans to exit the kids’ licensed video game category and focus on its core game franchises and digital initiatives. The firm’s new business plan will result in as many as 240 jobs being cut by the end of September.
While total charges related to these actions are estimated at $11 million (£7m), THQ expects the streamlining measures to result in a reduction of selling, general and administrative expenses and product development expenditures totalling $160 million (£101.2m) annually.
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