THQ Inc. reported on 27 July 2011 its financial results for the company’s first financial quarter of 2012, ended June 30, 2011.

Among the captivating array of financial results (discussed below), came news on THQ’s plans moving forward.

“We are disappointed in our first quarter financial performance. Sales of Red Faction: Armageddon and our licensed kid’s titles were below our expectations, and the late release of UFC Personal Trainer also adversely impacted the quarter,” said Brian Farrell, THQ President and Chief Executive Officer.

“Despite a light first half, we are looking forward to a strong and profitable second half, including what we expect to be the biggest third quarter, both in revenue and earnings per share, in our company’s history, with proven franchises Saints Row, WWE and the uDraw GameTablet, all launching in November.”

Speaking later during an investor call, as reported by Gamasutra, Farrell explained to investors that THQ will be ditching the Red Faction franchise. “Given that [Red Faction] now in two successive versions has [only] found a niche, we do not intend to carry forward with that franchise in any meaningful way,” said Farrell.

Farrell said the game did not find success with the general console gaming audience despite its niche popularity. “In today’s hit-driven, core gaming business, even highly-polished titles with a reasonable following like Red Faction face a bar that continues to move higher and higher,” said Farrell.

This is a pity as Red Faction had the potential to be something special. MyGaming gave Red Faction: Armageddon a solid 75% in our review.

“Moving forward, our core game titles must meet a very high quality standard with strong creative and product differentiation, appeal to a broad audience, and be marketed aggressively,” he continued.

THQ is apparently not happy with the average review scores for the Red Faction franchise, which is hovering in the low 70’s on review aggregate sites such as Metacritic and Gameranking. Farrell said that THQ will be aiming to deliver higher quality titles in future.

Long-time Red Faction developer Volition is hard at work on Saint’s Row The Third, as well as Insane, a collaboration with director Guillermo del Toro.

THQ FQ1 2012 Financial results

For the fiscal first quarter ended June 30, 2011, THQ reported net sales of $195.2 million, compared with $149.4 million in the prior-year period. On a non-GAAP (generally accepted accounting practices) basis, for the three months ended June 30, 2011, the company reported net sales of $141.2 million, compared with $160.3 million a year ago.

For the three months ended June 30, 2011, the company reported a net loss of $38.4 million, or $0.56 per diluted share, compared with a net loss of $30.1 million, or $0.44 per diluted share, in the prior-year period. On a non-GAAP basis, for the three months ended June 30, 2011, the company reported a net loss of $64.4 million, or $0.94 per diluted share, compared with a non-GAAP net loss of $14.4 million, or $0.21 per diluted share, in the prior-year period.

THQ’s upcoming titles include Saints Row: The Third, Darksiders II, Metro: Last Light, WWE ’12, UFC Undisputed 3, Warhammer 40,000: Space Marine, Devil’s Third, and inSANE, as well as many updates for the uDraw GameTablet.

The company announced an agreement with Turtle Rock Studios Inc., the creators of the multiple award-winning “Left 4 Dead,” to publish a new core title scheduled to be released in calendar 2013.

On June 15, 2011, industry talent Patrice Désilets joined THQ, working out of its Montreal, Quebec development studio on a new original AAA title.

THQ ditches Red Faction franchise << Comments and views

Source: THQ Reports Fiscal 2012 First Quarter Results

Source: Gamasutra