THQ Lowers Guidance On Delays, Low Shipments

Ahead of its Q2 earnings expected November 1st, THQ has announced delays of a number of next-gen titles, including Destroy All Humans, Frontlines, and de Blob, as well as lower than expected shipments of recent releases, leading to a lowered fiscal 2008 outlook. Previously expected for release in its fiscal fourth quarter ending March 31st of next year, Destroy All Humans!: Path of the Furon for Xbox 360 and PS3, the PS3's Frontlines: Fuel ofWar, and de Blob for the Wii and DS have all been delayed to unspecified dates in fiscal 2009. Because of this, its revised Q4 is expected to bring in sales of $240 million. More recently, Q2 results have also been lowered due to lower shipments and higher price protection of recent releases Stuntman: Ignition and Juiced 2: Hot Import Nights, now standing at quarterly sales of $229 million, down from $240 million. The impact will also affect its holiday Q3, where it now expects sales of $490 million. For the entire fiscal year, THQ's results are now estimated at $1.06 billion, down sharply from previous estimates of $1.12 billion to $1.15 billion. Said THQ president and CEO Brian Farrell, “We are disappointed that our latest editions of Juiced and Stuntman did not perform to expectations. Because of THQ’s commitment to delivering quality products, we have moved the PS3 and Xbox 360 versions of Destroy All Humans!, and the PS3 version of Frontlines into fiscal 2009. We believe the additional time will enable us to create the best products for our customers.” He continued, “Our new title de Blob has generated strong critical acclaim and excitement among gamers. We have decided to schedule this title for global release next fiscal year in order to enhance the game and maximize the opportunity for this new franchise.” Farrell was optimistic on its future, however, concluding, “We are looking forward to this holiday season, with our proven line up, led by WWE SmackDown vs. Raw 2008 on six platforms. Importantly, we expect fiscal 2009 to be a very strong year, as we benefit from a solid product slate, including Disney/Pixar’s Wall-E, Red Faction 3, Saints Row 2 and our first games based on the UFC.”