THQ Studios to lose 200
Wednesday, 7th May 2008 at 10:09 am
Although company targets overall growth this year and will experiment with new business models as part of 'realigning'
After reporting a $35m FY loss last night, publisher THQ confirmed in a post-earnings conference call that it would be losing 200 staff across its studios.
However, Gamasutra reports, the company does plan to grow its employee count overall from 2400 to 2700 this year. CEO Brian Farrell said that those studios with more "last gen" skills, such as PS2 development, would be reduced in size while "key studios" would ramp up for specific next-gen projects.
THQ reported that it had made its thirteenth year of consistent revenue growth, but overall profits were down. It had already conceded that it needed to improve production and quality of its games - and Farrell added in the conference call that the firm was now introducing a four-stage greenlighting process.
The company is also realigning its cost structure to make sure that it has more strategic franchises, a new company-wide operating budget, and making sure production and marketing money was properly spent.
Farrell added that THQ will introduce a new game for the Chinese market, Company of Heroes Online co-developed by CoH creator Relic and Shanda. The free-to-play microtransaction supported game is targetted at Eastern gamers, but could find its way to the West.
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