It's not exactly a surprise that Red Faction: Armageddon didn't sell all that well, but it's interesting (and a little sad) that THQ publicly acknowledges it.
“We are disappointed in our first quarter financial performance. Sales of Red Faction: Armageddon and our licensed kids titles were below our expectations, and the late release of UFC Personal Trainer also adversely impacted the quarter,” said Brian Farrell, THQ President and Chief Executive Officer during an Investor conference call today.
As for what this means for the franchise, it isn't good. Farrel said THQ doesn't intend to continue on with the Red Faction franchise "in any meaningful way."
THQ aren't just wistfully looking back at the past quarter and bemoaning the sales that might of been --For the three months that ended June 30, 2011, the company reported a net loss of $38.4 million -- The company is looking forward to a bright future too. THQ is continuing to follow a four point strategy toward financial success:
- Create a digital ecosystem around key title console launches such as the November 15 release of Saints Row: The Third, which includes a robust DLC schedule, online Season Pass, and in-game store for consumables.
- Create a critical mass of users on social media platforms such as Facebook and mobile platforms including iOS and AndroidTM, using THQ-owned or branded content, such as the upcoming fall release of Margaritaville® Online based on Jimmy Buffett’s popular brand;
- Create an ongoing digital revenue stream with the launch of the company’s MMO, Warhammer® 40,000®: Dark Millennium™ Online; and
- Continue to drive digital end user sales through existing channels as well as the re-launch of THQ.com.
Any financial plan that relies on Jimmy Buffet is bound to succeed. Have you heard that guy sing? Ka-pow!
In an interesting bit of the investor conference call held today, CEO Farrell said that one of the reasons Saints Row The Third will sell so well is because "It's a very unique game. There is nothing like it."
I can think of one series that's a little like it... It starts with the initials G.T.A.
In any case, if you're really super curious about THQ's financial health, the company says:
THQ reported net sales of $195.2 million, compared with $149.4 million in the prior-year period. On a non-GAAP basis, for the three months ended June 30, 2011, the company reported net sales of $141.2 million, compared with $160.3 million a year ago.
Hey, buddy. Follow my twitter feed!