THQ, no longer for kids
1/25/2012 11:39:00 AM
THQ's getting out of the kids licensed business. In a press release issued today, they said they are focusing on core games, but will still sell certain previously released titles.
The IPs they are going to focus on include Saint's Row, UFC, Darksiders, Company of Heroes, inSANE, Warhammer 40,000, and a new title from Patrice Desilets. No mention of WWE, which is a little interesting, but that could just be that they were mentioning games on the horizon.
THQ has been losing money lately, and this seems to be a way to focus themselves on a leaner, but more solid portfolio of titles. It's too bad some of the old franchises that were great are not in focus such as Red Faction and dare I say, Freespace, but let's hope this all works out for THQ.
I don't know many folks that are going to miss the kids license titles personally.
THQ Outlines Business Strategy of Focusing Exclusively on High-Quality Core Games and Connected Experiences for Key Franchises
Company Exiting the Kids’ Licensed Category
AGOURA HILLS, Calif.--(BUSINESS WIRE)--Jan. 25, 2012-- THQ Inc. (NASDAQ: THQI) announced its updated business strategy as the company exits traditional kids’ licensed video games and focuses on its core video game franchises and digital initiatives for the future. The company will continue to build its strong portfolio of core game franchises and align its resources to deliver games on both existing consoles and new and emerging platforms. The company intends to accelerate digital revenues by extending and supporting key console launches, and to create dedicated digital properties for emerging platforms.
As part of the alignment, THQ is in the process of exiting its relationships with kids’ licensed entertainment companies but will continue to sell certain previously released titles.
“THQ will be a more streamlined organization focused only on our strongest franchises,” said Brian Farrell, President and CEO, THQ. “The success of Saints Row®: The Third™ is an example of what our revised strategy and focus can achieve. We have now shipped 3.8 million units globally and are currently expecting to ship between five and six million units lifetime on this title. Additionally, our robust digital content offerings for this game have resulted in the highest digital revenue of any console title in our history.”
The company’s five internal studios are developing games aligned to several of THQ’s key franchises, including the upcoming launch of UFC® Undisputed™ 3 and Darksiders® II, as well as Company of Heroes, inSANE, Saints Row, Warhammer 40,000, and the new title from Patrice Désilets and his team. The company also continues to work with prominent external development talent on both existing and new franchises. THQ’s goal is to optimize its portfolio for the current generation of consoles and to establish new franchises on the next generation of game devices.
THQ will discuss its new streamlined business model that reflects this strategy in more detail on its third quarter 2012 conference call scheduled for Thursday, February 2, 2012.