Reporting slight profits for its Q3, THQ has slashed 60 jobs and announced plans to realign some of its studios towards digital distribution platforms.
The company reported profits of $542,000, compared to a loss of $192 million for the same period last year. Sales were flat at $357 million. The results came in slightly below analyst targets, although there was some cheer, as THQ said its Q4 would come in higher than Wall Street expectations. Shares popped 8% at the end of the day.
Following on from a year of cost-cuts, including 600 jobs, THQ said it would trim a further 60 jobs. Its Juice Games and Rainbow Studios teams have been "realigned" and renamed as THQ Digital Studios Warrington and THQ Digital Studios Phoenix. Both will work on established and new IP iterations for digital platforms such as Xbox Live Arcade, iPhone and iPad.
Consumers are increasingly looking for deeper engagement with their favorite entertainment experiences. They also want to enjoy games and entertainment via convenient social and portable platforms that suit their lifestyle,” said Danny Bilson, executive vice president, THQ Core Games. We plan to address these needs through a rich offering of content distributed across digital platforms, based both on all of our major core brands as well as new intellectual properties.”
Announcing the financial results
CEO Brian Farrell said
"This marks a significant turnaround for THQ in just one year and underscores the success of our focused strategy and reduced cost structure."