THQ Delays Red Faction, Posts $114M Loss, Confirms Layoffs

THQ Delays Red Faction, Posts $114M Loss, Confirms Layoffs

Things have been tough for THQ over the past couple weeks, with delays, studio closures and a tumbling stock price making headlines. The company announced its quarterly results today which were, surprise, surprise, not too good. The publisher reported sales of $US164.8 million, down from $US229.3 million in the same quarter last year.

THQ bled cash to the tune of $US115.3 million, way up from Q2 2007's loss of $7 million. Potentially worse for gamers was the delay of Red Faction: Guerrilla and Darksiders: Wrath of War well into 2009.

The publisher also confirmed it would lay off 250 employees as part of a "strategic plan and business realignment."

THQ further explained that its plan involves "the cancellation of several titles that were in development but had not been publicly announced."

Both Red Faction: Guerilla for Xbox 360, PS3, and PC as well as Darksiders: Wrath of War for Xbox 360, and PS3 will now ship after March 31, 2009 a move that will hurt the company's fiscal 2009 to the tune of approximately $US125 million.

For the quarter, THQ reported that the lion's share of its revenue came from the Nintendo DS and Wii, similar to Activision Blizzard's console earnings announced earlier today. THQ released de Blob and WALL-E (internationally) on those platforms, with the latter seeing lower than expected sales.

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