Jan 25, 2012

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THQ Exits Kids’ Game Market, Focusing on Core Franchises

THQ Exits Kids’ Game Market, Focusing on Core Franchises

Today THQ has announced a new business plan for the future of the company and it doesn’t involve making kids games. The gaming company that has partnered with Disney and Nickelodeon creating numerous kids titles, will no longer be creating “traditional kids’ licensed video games” and is instead focusing on its “core video game franchises and digital initiatives.” The success of Saints Row: The Third has a lot to do with this decision.

“THQ will be a more streamlined organization focused only on our strongest franchises,” said Brian Farrell, President and CEO, THQ. “The success of Saints Row®: The Third™  is an example of what our revised strategy and focus can achieve. We have now shipped 3.8 million units globally and are currently expecting to ship between five and six million units lifetime on this title. Additionally, our robust digital content offerings for this game have resulted in the highest digital revenue of any console title in our history.”

This announcement comes just a week after the rumor that THQ had canceled their entire 2014 line-up, which THQ denied shortly after the rumor popped up. In a statement released later that day THQ did mention that they had “made decisions to ensure that the company is strategically addressing the most attractive markets.” Now we know that they were talking about focusing on their more mature titles rather than releasing games geared towards kids.

THQ also mentioned in the announcement that they will be focusing on increasing their digital revenues by “extending and supporting key console launches, and to create dedicated digital properties for emerging platforms.” I’m not sure whether that means they want to create strong digital titles for handhelds and consoles, or whether it means they want to start pushing micro-transactions more aggressively. Either way it looks as if THQ, one of the largest publishers of children’s titles, will now be focusing on their strongest franchises (UFC Undisputed, Darksiders, Company of Heroes, inSANE, Saints Row, Warhammer 40,000) along with continuing to create new franchises geared towards the older audience. We’ll find out more about this new strategy next week during THQ’s third quarter 2012 conference call scheduled for February 2nd.

[Source: THQ]