THQ Sees $431 Million Yearly Loss, Gets More Credit

Publisher THQ today announced the results of the fiscal year that ended on March 31, 2009, revealing a net loss of $431.1 million. Described by THQ CEO Brian Farrell as "a challenging fiscal 2009," the year saw higher losses and lower sales than FY2008.

Net sales dipped to $830 million in FY2009, down from $1.03 billion in FY2008, with FY2008's net loss coming at a relatively less severe $35.3 million. Despite the slide, Farrell expressed confidence for the next year, citing THQ's recently completed cost-cutting measures and its increased focus on quality, brands and profitability.

The company also touted its recent sales highlights, pointing out that Saints Row 2 has now shipped over 2.8 million units and noting that Warhammer 40K: Dawn of War II "debuted as the best selling PC game across major video game markets worldwide."

In a separate announcement, THQ added that it has "signed a commitment letter for a $35 million senior secured credit facility with Bank of America, NA," with THQ CFO Paul Pucino explaining that "we are pursuing this credit facility as a prudent backup to our $141 million cash and short-term investment balance at March 31, 2009."

Chris Faylor was previously a games journalist creating content at Shacknews.

From The Chatty
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    May 6, 2009 3:49 PM

    If Relics recent releases are anything to go by I've honestly got doubts as to how well their recovery will be..

    CoH has been patched into a mess, the Dev team replaced by newbies that seemingly have no idea what their doing with it...

    And DoW has some fairly nasty balance issues.. IE Nids eat everything... Still lets hope they can pull through ;)

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      May 6, 2009 3:58 PM

      Haha I don't think "balance issues" affect profitability all that much. The game has sold well and is enjoyable enough that most will continue to consider buying relic titles.

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        May 7, 2009 8:05 AM

        I totally agree with you, it doesn't effect profitability right now.

        The effect it does have is on the perception of a brand name for future releases, and while its true many people buy the game primarily for the SP experience still, I know that for future relic releases I will not be considering their MP features atall in any future purchases if any from them.

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      May 6, 2009 4:06 PM

      I can only read this post and laugh. Thanks man, lightened the day! :)

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      May 6, 2009 4:09 PM


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      May 6, 2009 4:09 PM

      I agree that CoH is a complete mess. Patches don't improve upon one another, patches introduced to fix a specific bug don't fix it at all - etc.

      They're doing nice work with DoW 2 though, patch hits ~next week. While balance isn't the focus of the patch we know at least the Ravener Alpha gets a nerf ;) Tyranids will need little nerfs to almost every unit though in order to balance them out vs the other races ..

      Follow for patch updates.

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        May 7, 2009 8:08 AM

        Thanks for the update, I'm guessing that since the new team are most likely the ones who made DoW2, they must know it alot better then CoH.

        I got DoW2 mostly for the 3v3 team games with friends and while I found their match making service far more reliable and stable.. the balance at mid ranks (TS20+) to be horrible so I gave up :P
        Still thanks for the link I'll go have a look ;)

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