THQ reports poor financial results; Red Faction franchise now on hold

Game publisher THQ released its latest financial results today and the numbers were a big disappointment for the company. The company recorded non-GAAP revenues of $141.2 million for the quarter that ended on June 30. That compares to revenues of $160.3 million for the same period a year ago. THQ recorded a non-GAAP net loss of $64.4 million for the quarter compared to a loss of $14.4 million for the same period a year ago.

THQ blamed the numbers on the lower than expected sales of a number of games released in the last quarter, including the heavily hyped third person sci-fi shooter Red Faction Armageddon. In fact, during the conference call with analysts today, THQ CEO Brian Farrell stated that due to the poor sales of the game the entire Red Faction series is being retired, at least for now. He stated, "We do not intend to carry forward with that franchise in any meaningful way." In addition, THQ also blamed the fact that the release of its UFC Personal Trainer game was released too late in the quarter to have much of an impact. On the other hand, the company expressed optimism that upcoming quarters will show improvement, especially with the release in the fall quarter for games like Saints Row The Third, its next WWE pro wrestling game and the next game in its UFC mixed martial arts game series.

In addition to the games planned for release for the rest of 2011, THQ has already revealed plans for games in 2012 and 2013. That includes Metro Last Light, a sequel to 2010's post apocalypse shooter Metro 2033. Another sequel due out in 2012 is the action game Darksiders 2. THQ plans to also release inSANE, a horror-themed game, sometime in 2013. Finally the company still has plans to release an MMO based on the Warhammer 40,000 game franchise.

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