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Losses mount for THQ in Q2

by on06 November 2008

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Confirms studio closures layoffs of 17%

As we told you earlier in the week, THQ has not confirmed that it has, in fact, closed five studios and laid off 17 percent of its developers. With losses that have mounted to almost $115 million, the company has doubled its efforts to save costs and the reduction in employees was necessary to reach this objective.

The company believes that going forward it will have to focus on high-quality titles and curb spending on the development of titles. In an effort to increase the quality of the titles that it is delivering in hopes that they will be better received when released, the company has pushed back the release of Darksiders: Wrath of War and Red Faction: Guerrilla until mid-April, according to our sources.

The delay on these two high-profile titles could be viewed as a good thing as the company is taking a stance on delivering higher quality titles and fewer bugs which is something THQ has been criticized for in the past. THQ has struggled, but has had some recent success with the release of both De Blob and Saints Row 2, which both recently hit the shelves to good reviews and stronger than expected sales.

With the closure of five studios, THQ has trimmed the number of studios from 16 to 11. With the 17 percent staff reduction the company has shed a little more than 250 jobs. Still, the path ahead will be difficult, as THQ along with other developers continue to attract attention in a difficult time to generate revenue selling video games.

Last modified on 06 November 2008
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