THQ Inc. (THQI) reported their fiscal Q3 2010 (calendar Q4 2009) earnings this morning and surprised some analysts with a small profit. However, as you can see from the chart above (calendar quarters in millions) the once substantial mobile unit, THQ Wireless, continued to see its business shrink... and its $2.29mil now only represents 0.64% of THQ's quarterly revenues from all platforms. Total mobile revenue for calendar 2009 was $14.8mil, which puts them a notch below companies like Capcom, I-Play and Hands-On in my estimates. That's a long bumpy descent from the $30mil level they were at in 2006. But that might all be about to change according to a story at PocketGamer.biz, which reports that the company is in the process of realigning itself to focus on digital distribution channels like X-Box Live Arcade... and more interestingly for y'all, iPhone & iPad. I like that idea in principle, but it's hardly original... and we've heard similar refrains from THQ in the past. Let's see if they can commit this time and find ways to leverage their unique access to high-quality IP (e.g. Star Wars) to create some competitive advantage. What do you guys think?
Thursday, February 4, 2010
Can THQ Wireless Fly Again After Bumpy Descent?
THQ Inc. (THQI) reported their fiscal Q3 2010 (calendar Q4 2009) earnings this morning and surprised some analysts with a small profit. However, as you can see from the chart above (calendar quarters in millions) the once substantial mobile unit, THQ Wireless, continued to see its business shrink... and its $2.29mil now only represents 0.64% of THQ's quarterly revenues from all platforms. Total mobile revenue for calendar 2009 was $14.8mil, which puts them a notch below companies like Capcom, I-Play and Hands-On in my estimates. That's a long bumpy descent from the $30mil level they were at in 2006. But that might all be about to change according to a story at PocketGamer.biz, which reports that the company is in the process of realigning itself to focus on digital distribution channels like X-Box Live Arcade... and more interestingly for y'all, iPhone & iPad. I like that idea in principle, but it's hardly original... and we've heard similar refrains from THQ in the past. Let's see if they can commit this time and find ways to leverage their unique access to high-quality IP (e.g. Star Wars) to create some competitive advantage. What do you guys think?
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thq is dead! mobile games blog already mentioned that the studio boss of universomo left so who should do the work. thqw will be sold or closed. (10% M&A and 90% closed - just my 2cents!)
ReplyDeletei'm suprised they're still kicking frankly but would love to see them succeed. There are some good folks over there who have suffered from a lack of true focus and commitment from upper mgmt.
ReplyDeleteThe wrong management is always the biggest problem! THQ management never had the balls to get rid of the real reason of the failure of THQw - till today. THQw lost the track long time ago :(
ReplyDeleteBig brands and huge chances to become a market leader. "Finish him" - please someone out there make an end to the zombie THQw.