THQ swings to $15m loss with cancelled projects
Company of Heroes Online, WWE Online cancelled at cost of $10m, $30m impairment from movie games
Red Faction publisher THQ has recorded a loss of $14.9 million (£9.2m) for the third quarter ended December 31, 2010, compared to a profit of $542,000 for the same period last year.
Sales were also down to $314.6 million (£194m) compared to $356.7 million for the previous year's quarter.
The publisher has cancelled the planned Company of Heroes Online and WWE Online games - Western content to be turned into free-to-play games for Asian markets - at a cost of $9.9 million.
It has also "re-evaluated" sales of kids games based on movie licenses, resulting in a $30.3 million impairment on movie tie-ins for games that have not been released yet.
During the quarter the publisher shipped 1.2 million uDraw game tablets, with an international release due in March. It also shipped 2.7 million units of WWE Smackdown vs Raw 2011.
"THQ is poised for significant net sales and earnings growth in fiscal 2012 as a result of aggressive investment in owned intellectual properties and major franchises, a lean cost structure, and growing digital revenues," said CEO Brian Farrell.
"Fiscal 2012 will be driven by the strongest core games line-up in our history, including: Red Faction Armageddon, Warhammer 40,000 Space Marine, MX vs ATV Alive and the newest instalment of our Saints Row franchise."
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