It doesn’t seem like a good year for finances in the gaming world because now THQ is running on the edge as well.
In the 2012 fiscal year report, THQ suffered a loss of about $240 million compared to last year’s $136 million loss. Some may look at this compared to Nintendo and Sony, but remember one thing: THQ is much, much smaller than those companies.
The major loss in money has forced THQ to layoff around 240 employees, produce major paycheck cuts, and completely demolished their production department of games geared toward kids.
Many of these moves are reported to have been an aftereffect of the uDraw investment, a drawing tablet gaming peripheral, that failed to deliver on company revenue. After two years on the market, the uDraw has only sold about 84% of the total stock.
THQ president and CEO, Brian Farrell, had this to say:
We exceeded our initial fourth quarter guidance for net sales, earnings and cash position, driven by high quality core games with a significant digital component, which is the blueprint for our future. We have made significant changes to our business, and are on track to execute our strategy of delivering quality connected core gaming experiences, beginning with the sequel to the award-winning Darksiders in August.
Do you think THQ can make a comeback or has the downward spiral gone too far?