Company Increases Emphasis on High Potential Categories; Reduces Focus on Kids and Movie-Based Licensed Titles for Consoles
AGOURA HILLS, Calif., Aug 09, 2011 (BUSINESS WIRE) -- THQ Inc., (NASDAQ:THQI) today announced a strategic realignment of its internal studio development teams to better align resources with the company's future portfolio of interactive entertainment. THQ is in the process of transitioning its portfolio away from licensed kids titles and movie-based entertainment properties for consoles and has also decided not to actively pursue further development of the MX vs. ATV franchise at this time. As a result, the company announced the closure of two studios in Australia, and the elimination of a development team at the company's Phoenix location. The company is maintaining its Quality Assurance team in Phoenix.
THQ's five internal development studios are focused on key initiatives and franchises: THQ Montreal, creating an unannounced new IP with a team led by industry veteran, Patrice Désilets; Volition, Inc., developing the highly anticipated upcoming game Saints Row(R): The Third,(TM) and inSANE(TM) in collaboration with renowned film director Guillermo del Toro; Relic Entertainment, creators of Company of Heroesand the upcoming Warhammer 40,000(R): Space Marine(TM) for PlayStation 3 computer entertainment system and the Xbox 360 video game and entertainment system; Vigil Games, developing Darksiders(R) II and next year's MMO Warhammer 40,000: Dark Millennium Online(TM); and THQ San Diego, developers of WWE All Stars and creating best-in-class fighting games.
Today's actions will result in a personnel reduction of approximately 200 people. All affected employees are eligible to apply for open positions within the company globally.
"With this realignment, we are narrowing our focus to high-quality owned IP with broad appeal that can be leveraged across multiple platforms, and to work with the best talent in the industry. By right-sizing our internal development capacities for our console portfolio, our five internal studios are focused on delivering high-quality games with talented teams driving the execution of those titles to market," said Brian Farrell, President and CEO, THQ. "As we have outlined in our business strategies, we are making shifts to reduce movie-based and licensed kids' video games in our portfolio, which underscores our strategy to move away from games that will not generate strong profits in the future."
Farrell added, "We will continue to evaluate our capital and resources to concentrate on fast growing digital business initiatives such as social games, mobile and tablet-based digital entertainment."
The company has recently outlined its four-pillar digital strategy: 1) create a digital ecosystem around key console title launches such as the scheduled November 15, 2011 release of Saints Row: The Third, which includes plans for a robust DLC schedule, online Season Pass, and in-game store for consumables; 2) create a critical mass of users on social media platforms such as Facebook and mobile platforms, including iOS and Android(TM), using THQ-owned or branded content, such as the upcoming fall release of Margaritaville(R) Online, based on Jimmy Buffett's popular brand; 3) create an ongoing digital revenue stream with the launch of the company's MMO, Warhammer 40,000: Dark Millennium(TM) Online; and 4) continue to drive digital end-user sales through existing channels as well as through the upcoming re-launch of THQ.com.
THQ Inc. (NASDAQ: THQI) is a leading worldwide developer and publisher of interactive entertainment software. The company develops its products for all popular game systems, personal computers, wireless devices and the Internet. Headquartered in Los Angeles County, California, THQ sells product through its global network of offices located throughout North America, Europe and Asia Pacific. More information about THQ and its products may be found at http://www.thq.com. THQ, THQ Montreal, THQ San Diego, Volition, Inc., Relic Entertainment, Vigil Games, Saints Row, Saints Row: The Third, Insane, Darksiders, and MX v. ATV and their respective logos are trademarks and/or registered trademarks of THQ Inc. or its affiliates.
All other trademarks are the property of their respective owners.
The statements contained in this press release that are not historical facts may be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995.Such statements include, but are not limited to, statements regarding our business plans and objectives, including our realignment plan, and may include certain assumptions that underlie the forward-looking statements.These forward-looking statements are based on current expectations, estimates and projections about the business of THQ Inc. and its subsidiaries (collectively referred to as "THQ") and are based upon management's current beliefs and certain assumptions made by management.Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such forward-looking statements, including, but not limited to, business, competitive, economic, legal, political and technological factors affecting our industry, operations, markets, products or pricing.Readers should carefully review the risk factors and the information that could materially affect THQ's financial results, described in other documents that THQ files from time to time with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal period ended March 31, 2011, and subsequent Quarterly Reports on Form 10-Q, and particularly the discussion of trends and risk factors set forth therein.Unless otherwise required by law, THQ disclaims any obligation to update its view on any such risks or uncertainties or to revise or publicly release the results of any revision to these forward-looking statements.Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.
SOURCE: THQ Inc.
THQ Corporate Communications
Angela Emery, 818-871-8650
THQ Investor Relations
Lisa Mueller, 818-871-5125