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Thursday, Mar 28, 2024

THQ Cuts Staff, Studios

Video game publisher THQ Inc. will layoff 17 percent of its workforce and close five studios as part of a restructuring in the face of dropping income. The Agoura Hills-based company reported a net loss of $115.3 million, or $1.73 per diluted share, on revenues of $164.8 million for the quarter ending Sept. 30. For the same period a year ago, the company had a net loss of $7 million, or $0.11 per diluted share, on revenues of $229.3 million. As part of its restructuring THQ will focus on fewer, higher quality titles and will cut $100 million from its game development budget for 2010. Cuts in marketing and general and administrative expenses will eliminate another $20 million. The company is also taking an estimated $125 million by delaying the release of “Red Faction: Guerrilla” and “Darksiders: Wrath of War” to spring 2010 from the fourth quarter of 2009. Restated guidance has the company pulling in revenues in the range of $400 million to $420 million for the quarter ending Dec. 31 and in the $875 million to $900 million range for the fiscal year ending March 31, 2009. THQ shares closed down at $4.68.

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