Publisher THQ has had a difficult first quarter in 2010 with net sales down to $149.4 million from $243.5 million and a reported loss of $30.1m compared to profits it had experienced for the same period in 2009.
CEO for THQ Brian Farrell highlighted lower than expected sales of their most recent UFC title and also the impact of pre-owned titles. He indicated that the company is looking towards spreading out future releases in the franchise out rather than keeping to yearly updates of the series. He also had this to add in a conference call to investors over the financial results:
"We are excited about the opportunity for industry growth provided by rapidly expanding online markets and new gaming platforms such as Kinect, Move and Nintendo 3DS,"..." We are developing franchises on these new gaming platforms and we are increasing our investment in online and digital gaming to benefit from these emerging markets."
In terms of the ongoing negative impact of pre-owned, he told investors that the company had is developing a strategy of "robust downloadable content and premium online play" that will, "increase our digital revenue, engage players with our games for a longer period of time and reduce the impact of used games."
Seems like many of the major publishers have been heavily hit so far this year in their revenue streams. Let's see if devices like the Playstation Move, Micrsoft Kinect and Nintendo 3DS help to shake up the fortunes of THQ and their ilk over the remainder of the year.
Source: THQ Q1 financial report
CEO for THQ Brian Farrell highlighted lower than expected sales of their most recent UFC title and also the impact of pre-owned titles. He indicated that the company is looking towards spreading out future releases in the franchise out rather than keeping to yearly updates of the series. He also had this to add in a conference call to investors over the financial results:
"We are excited about the opportunity for industry growth provided by rapidly expanding online markets and new gaming platforms such as Kinect, Move and Nintendo 3DS,"..." We are developing franchises on these new gaming platforms and we are increasing our investment in online and digital gaming to benefit from these emerging markets."
In terms of the ongoing negative impact of pre-owned, he told investors that the company had is developing a strategy of "robust downloadable content and premium online play" that will, "increase our digital revenue, engage players with our games for a longer period of time and reduce the impact of used games."
Seems like many of the major publishers have been heavily hit so far this year in their revenue streams. Let's see if devices like the Playstation Move, Micrsoft Kinect and Nintendo 3DS help to shake up the fortunes of THQ and their ilk over the remainder of the year.
Source: THQ Q1 financial report
Companies:
THQ
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