NEWS

THQ Q2 report; all major titles delayed


THQ announced today during their Q2 financial report that all of their major AAA upcoming titles have been delayed.

The company announced that the upcoming South Park title has been pushed back from a March release to a "early fiscal 2014". Meaning that the earliest South Park will see retail is in April, but that's being fairly optimistic.

Both Metro: Last Light and Company of Heroes 2 have been pushed to a release date in March that was not specified. THQ's president Jason Rubin stated that the delays are to ensure that the titles of are the highest possible quality.
Our fourth quarter releases are the first titles that I have had the ability to materially impact, and experience told me that the games needed additional development time to be market-ready, he said.

I firmly believe releasing our fourth quarter titles without extra time for polish in the current environment would lead to underperformance that could in turn lead to future additional capital shortfalls. But extending development schedules in order to make the best possible titles also has financial implications. Yet there can be no doubt which path has the greatest chance of leading to the long-term success of the company. We must follow the course that generates the highest quality games, and will establish THQ as a mark of quality for the consumer.
Rubin also stated that the publisher has 10 titles set for fiscal year 2014 and out. Some of the known titles include a sequel to Saints Row: The Third, Homefront 2, and an undisclosed Turtle Rock Studios title.

THQ's Q2 earnings were down to $107.4 million, down from $146 million during this time in 2011. However, the net loss was down from $92.4 million to only $21 million year-over-year.

Darksiders 2 was THQ's bright spot for the quarter, pushing out 1.4 million copies and maintaining a Metacritic rating of 83. However, THQ CEO Brian Farrell stated that the numbers for the title were "below expectations". It was reported that Saints Row: The Third, released at the end of 2011, has pushed out over 5 million copies in one year, which is a pretty good sign for the franchise.

THQ's digital revenue brought in $19.1 million totaling 21% of the firm's adjusted earnings, which is a 34% increase year-over-year.

Jason Rubin pointed to Darksiders 2's "below expectations" numbers as justification for the numerous delays that were announced today. He stated that those numbers show that only "top tier" games are available on the market in a impact capacity. Judging by Rubin's comments, Darksiders 2 may have been delayed even more earlier this year if he was brought to THQ sooner than he was.

Lastly, THQ announced that they have hired Centerview Partners LLC to search for "strategic and financing alternatives" to raise additional capital and will no longer be discussing their financial situation until all efforts have been exhausted. THQ will not be issuing a Q3 FY2013 earnings report.