Saints Row: The Third Provides Q4 Financial Boost for THQ
Today THQ released a statement announcing that better-than-expected sales of Saints Row: The Third have helped raise the company’s expected year-end revenue from the $130-$150 million range to the $160-$170 million range. In addition, the company’s total cash is expected to be $76 million—a figure that they claim is three times higher than what they’d expected to have in their coffers by the end of the fiscal year ending March 31, 2012. The statement claims that Saints Row: The Third shipped more than four million units, and has also helped the company rake in more money through higher-than-expected digital sales.
In short, things are looking up for the struggling publisher—well, sort of up, at least. It still seems as though THQ is planning to take a loss for the end of the year, just not as much of a loss. In addition, the company’s loss in share prices fell in the $0.10-$0.20 range, instead of the expected share price loss of $0.35-$.0.50 range.
THQ has been besieged with bad news over the last few months. When their uDraw tablet failed to sell well for the PlayStation 3 and Xbox 360 consoles during the 2011 holiday season, the publisher announced that they would see massive financial losses. The announcement preceded massive layoffs, a “strategic realignment” (wherein they dropped just about all licensed and kids’ games), and the news that they were in danger of being kicked off of the NASDAQ stock exchange. And just two weeks ago, the CEO of Take-Two Interactive went ahead and publically pronounced THQ’s impending demise, saying “THQ won’t be around in six months.”
There’s no question that THQ’s announcement today of Saints Row: The Third is good news for the company, its employees, and its shareholders. But they’re still taking a loss this year, it seems—the company’s still in trouble. It’s doubtful that one game, released last year, is going to be much more good to them going forward. In the statement, the company mentions that they’re facing the new fiscal year ready to focus on Darksiders II, their next big release. Will it be a big enough hit to bring the company back from the brink?