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THQ Loses Millions, Plans Layoffs

- By - Source : Tom's Guide US

The US recession is lashing out at the video game industry once again, with publisher THQ now announcing major third quarter losses along with plans for additional layoffs.

The third quarter results published by THQ showed a loss of $9.6 million, or 14 centers per share.  Revenue also fell to $357.3 million from $509.6 million.  As a result of the downturn from a profitable third quarter just a year earlier, THQ has announced that additional layoffs are planned.  At least 600 jobs, or about 24% of THQ's workforce is expected to be on the receiving end of a pink slip in coming months.

In a recent conference call held by THQ, CEO Brian Farrell commented "This is one of the most challenging holiday retail environments I have experienced in my 18 years at THQ", in regards to the current economic environment faced by the company.

THQ currently owns and publishes computer and console games from eleven studios, including Volition, Inc., Relic Entertainment, and Big Huge Games.  Exact details regarding how the layoffs will fall have yet to be announced, leaving to question if the development or publishing sectors will be hit the hardest. 

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thomasxstewart 02/06/2009 2:53 AM
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zerapio 02/06/2009 2:56 AM
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> "centers per share"
Should read: cents per share

CJDavE 02/06/2009 3:31 AM
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1983 all over again? Make too many crappy games rather than a select few excellent games and something like this becomes even more likely to happen.

The_Blood_Raven 02/06/2009 3:54 AM
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I have to disagree. THQ is still making good titles where companies like EA have only made a SINGLE good game last year and that was Dead Space. A lot of THQs major titles are still in development and have been for awhile. EA has just begun developing TWO need for speed titles and they are expected by christmas! That's rushing a game out of the door!

CJDavE 02/06/2009 4:06 AM
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Good point. I was generalizing a bit there.

ravenware 02/06/2009 4:54 AM
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thomasxstewart :
Tom, Famed Bolvin Stealer, Knows Value of /Running. Thomas is large loose organization. School Buses, Chemicals, Registuries, Now Even Simple Claw Hammer have become symbol, why of computing hardware guide, yet Tom is Tom. Exploration of world coordinate social system is paramount, Even TOM Knows That.SignedHYSICIAN THOMAS STEWART von DRASHEK M.D.




WTF?

CJDavE 02/06/2009 5:04 AM
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ravenware :
WTF?



Obvious troll is obvious.

Maybe not coherent, but obvious.

megamanx00 02/06/2009 6:22 AM
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Honestly I buy less games because of DRM. I still can't completely resist buying them but now I do wait till they drop significantly in price and I take more consideration into what I buy. Back when SecureRom and SafeDisk just made disks difficult to copy I use to buy games all willy nilly :).

bounty 02/06/2009 5:50 PM
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don't forget that 50-60$ per game.... on the PC..... WTF remember the day's of 30$ games that had 4 or 5 good community mods and multiplayer modes for more than 4 people?

tenor77 02/06/2009 7:03 PM
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The_Blood_Raven :
I have to disagree. THQ is still making good titles where companies like EA have only made a SINGLE good game last year and that was Dead Space. A lot of THQs major titles are still in development and have been for awhile. EA has just begun developing TWO need for speed titles and they are expected by christmas! That's rushing a game out of the door!



Not calling you out or anything, I'm just curious what titles you're referring to. I'm honestly drawing a blank on the last good THQ title I played.

As for DRM, these publishers are doing exactly what the music industry did and encouraging piracy. Look to Valve and Stardock. These companies get it. PC gaming isn't dead but it is undergoing a transistion and it's not necessarily a bad thing, but those that fight it will end up in the tank.

bounty 02/06/2009 8:21 PM
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tenor77 :
I'm honestly drawing a blank on the last good THQ title I played..



http://www.thq.com/games/?platform=pc Ok there are plenty of lame games, but I loved Titan Quest. Other notables, I'm assuming Warhammer has a following since there are a billion expansions, Supreme Commander, S.T.A.L.K.E.R.: Shadow of Chernobyl (could use a easier to type title), Company of Heroes, Company of Heroes: Opposing Front

Raidur 02/07/2009 9:58 PM
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Company of Heroes is my favorite game from THQ, very well done if you ask me.

jqk 02/09/2009 11:11 PM
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Raidur :
Company of Heroes is my favorite game from THQ, very well done if you ask me.



Besides everytime you click on a group of soldiers they say the f word it was a good game