THQ Records $15 Million Net Income after Financial Problems and Restructuring

THQ has recently released its financial earnings results for the first fiscal quarter ended on June 30, 2012, and the company records a $15.4 million net income for the first quarter. This comes after numerous issues that have plagued the company over the past year and after a number of net losses in the previous quarters. Total sales came to $133.7 million, down from $195.2 million year over year.

CEO Brian Farrell issued a statement within the report, saying:

“We have made significant progress reshaping the company. With the changes implemented over the last several months, we are in a much better position today to deliver on our pipeline of games, beginning with Darksiders® II, which launches next week in North America.

“We are also pleased to have new management on board at THQ, led by President Jason Rubin, who brings tremendous experience to the company and has a proven track record of bringing multi-million unit sellers to market; Jason Kay, a fifteen-year media and entertainment industry veteran, as Chief Strategy Officer; and Ron Moravek, a seasoned creative development executive who has co-founded and led several technology businesses, including one of our most successful studios, Relic Entertainment, as EVP, Production. Jason Rubin and his new team bring an entrepreneurial approach to our game slate as we seek to maximize the value of our intellectual properties and evolve our business in the face of our increasingly digital future.”

The company has seen a great deal of restructuring over the last few months, most notably the move to hire Jason Rubin as president of THQ and the transfer of the UFC license to Electronic Arts.

As for the rest of the year, THQ has planned a small lineup  to come out of the studio, including next week’s release Darksiders II, as well as WWE 13, Company of Heroes 2, Metro: Last Light, and South Park: The Stick of Truth coming later on in the fiscal year.

Analysis: Appearances seem to indicate that THQ is starting to dig itself out of the hole it made after the disaster that was the uDraw tablet, and again, I can’t express how glad I am to hear the news as I’ve always been a fan of the company. Of course, the company isn’t necessarily out of the woods yet; THQ is a shell of its old self in terms of its work force, and really, one bad performance from any of the five games to come out this year will hurt the company. Bad.

Aside from that, news also came that THQ decided to kill development on Guillermo Del Toro’s new IP InSane, with all rights being returned to Guillermo Del Toro. I can’t say that I’m shocked or even saddened by the news. Very little was known about the title, and to me, the title was born to be cancelled anyway. In the midst of companies stepping away from unnecessary risks that new IPs can bring to the table (I’m looking at you, Sega), I would’ve been surprised if development did indeed continue on InSane. I’m curious to see, however, if anything does come out of the IP if only because new IPs tend to garner a lot of buzz among the hardcore gaming crowd. Watch_Dogs, anyone?

Interestingly, Jason Rubin has also expressed no intention of the company moving into social game development, a somewhat questionable financial move as that appears to be where the money is in the industry as of late. I personally admire the move, this coming from a gamer who avoids social gaming like the plague, but it is refreshing to see a company stick to its guns even if it may not be the best business decision.

Plus, Rubin also went on to reveal that THQ’s internal studios have commenced development on four unannounced titles in the past sixty days, although no further word has been given. I’ll be definitely paying attention to any word coming out of the THQ camp.

Nathan Wood

About Nathan Wood

When he picked up a controller on that fateful day at the age of 6, Nathan had no idea how quickly it would captivate him. Enjoying a wide range of games, he is up for anything as long as it is of good quality, interesting or laughably bad. When not playing or writing about video games, he enjoys music, film, basketball and art. He is currently completing his last year of his IB diploma before mastering the great land known only as: University.