Following some exceptional performances from key titles, THQ has reported profits that have exceeded analysts’ expectations.
The company enjoyed profits of $158 million in its first quarter period, well ahead of the $139 million estimated by financial analysts Wedbush Morgan. This was mainly attributed to the excellent sales of Destroy All Humans and Juiced, both new IPs which managed to sell over a million copies.
Analyst Wedbush Morgan offered: “We had not expected the company’s new releases to be million-unit sellers and were pleasantly surprised to discover that we had underestimated the company’s ability to execute on its business plan. We are confident that the company has strong development capability and expect it to grow revenues from owned intellectual property.
“We admit that we were sceptical about the prospects for both Juiced and Destroy All Humans and we were wrong. We continue to questions whether Destroy All Human has sequel potential but we had similar concerns about EA’s Medal of Honor and Activision’s Tony Hawk games early in each series history.”
Wedbush is not concerned by the delay of PC FPS S.T.A.L.K.E.R., but did mention a new title, ‘Cars’, set for release in the 2007 financial year, by which time THQ has stated that it expects to generate revenues approaching $1 billion.