THQ Reduces Q1 Losses, Reconfirms New Red Faction

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THQ reported a net loss of $9.274 million today for the first quarter of fiscal year 2008, down from a $12.101 million net loss during the same period last year. Net sales decreased for the quarter by 24.7% to $104.5 million, with most revenue coming from more than one million unit sales of Disney/Pixar's Ratatouille (PC, PS2, PS3, Xbox, X360, GCN, Wii, NDS, GBA) from Heavy Iron Studios. "We expect this game to have an extremely 'long tail' and strong international appeal, just like Finding Nemo," CEO Brian Farrell jested during an earnings conference call.

During the same call, Farrell mentioned again that development of a new game in the Red Faction shooter franchise would continue. "Today, we are confirming the next Red Faction game," he said. Farrell had already referenced a new Red Faction title in a conference call earlier this year.

The quarter's net losses are in line with THQ's estimates, with strong sales in the second half expected to bring revenues for fiscal year 2008 to between $1.12 billion and $1.15 billion. "Q4 net sales should be up approximately 60 percent versus last year, led by the multiplatform launches of Frontlines on three platforms, Destroy All Humans on five platforms, and a strong Wii and DS title, de Blob," said CFO Edward Zinser. "This compares to two PC titles in the fourth quarter of fiscal year 2007."

Responding to an analyst's question on how the holiday's heavily anticipated titles would affect THQ's sales, Farrell reiterated his company's niche. "While some people are coming at the market with Halo and Grand Theft Auto, we're coming with WWE, Pixar and Nickelodeon--not products that are directly competitive."

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From The Chatty
  • reply
    August 1, 2007 11:17 AM

    Did RF2 actually sell copies?

    I know FP works for Volition... but c'mon. We need a new Freespace or Descent. Unless they can pull off the original proof of concept for the first Red Faction with a graphics overhaul, then colored me interested. Otherwise from the horrible reports of what I heard regarding RF2, this is just dissapointing.

    Hell, I'd take a Saints Row sequel over another RF game.

    • reply
      August 1, 2007 11:25 AM

      You're getting a Saints Row sequel.

      • reply
        August 1, 2007 11:29 AM

        oooh yay, can't wait for more riding around in invisible cars...

        jk (that bug stopped happening to me after I spent a few minutes bitching about it to FP --- Women have much more power than we've been lead to believe)

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      August 1, 2007 11:30 AM

      RF3 needs to have actual gameplay wrapped around their kickass geo-mod technology (hopefully they've upgraded it too). I don't think either game sold very well, so this is kind of a surprise. A new Descent would kick ass...I loved that series and #3 was awesome for its day.

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      August 1, 2007 11:50 AM

      While RF2 didn't sell anywhere near as well as the first one, and it got reamed pretty hard in the reviews, it still did ok. I'm excited about RF3, because I know they learned a lot from the mistakes that were done in RF2. I'd expect RF3 is more of a return to form, while taking the few good things that were done right in RF2 into the new title and with the power of the PS3 and 360, they can really take the geomod technology to new heights.

      Saints Row 2 is coming, and there is still another unannounced project in development. But I wouldn't hold your breath for another Freespace or Descent, just yet. I'm certain the guys at Volition would like to make another Freespace or Descent, just as badly or maybe even more then most of that series fans. The problem lies in the fact that the numbers just aren't there for that type of space shooter, and would be like flushing that 40 million or more down the toilet. Now, a throw back to old school Descent, made for less money and targeted at XBOX Live Arcade, the PSN and Steam, would seem like something that might work...

      And, at the moment, I do not work for Volition, and the ideas I've expressed are not that of Volitions, but my own.

      I would really like another Freespace or Descent, too. =/

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        August 1, 2007 12:12 PM

        I disagree. If someone Volition can pull off a space shooter on the 360 or PS3 they'd be sitting in a prime position due to the lack of quality titles in the genre. What was the demo that just came out for the 360 by Square? Sylpheed I think... absolutely horrid. Given how many PC users have scooted sideways and picked up a 360, I would think a Freespace game, if done proper with a slew of MP options (not done ala gears or without any of Halo's clan offerings) would be scooped up by the PC>>360 players. Volition could regain status as a huge proponent of space combat simulators. Hell, they could even use it to push cross platform play between 360 and PC since space combat generally is not better using a mouse a keyboard like an FPS (though i'm sure many would disagree, I've always preferred a 3 axis joystick to kb/mouse in the Freespace games).

        Anyways... i'll wait for a demo before I touch any more RF games..

    • reply
      August 1, 2007 12:09 PM

      RF2's single player may not have been very good, but for the console crowd who didn't get much multiplayer in the first one it was great in that regard. My friends and I used to get together on the weekends and play RF2 multiplayer for hours. That and Timesplitters 2. Good year that was.

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      August 1, 2007 12:18 PM

      To me RF1 was the best SP experience in the series, but RF2 had better multiplayer.

      Put both of those together and slap in some super Geo-Mod and you got yourself a good game.

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