THQ warns of lower-than-expected earnings

[Sqoon]

Despite an obstinately healthy holiday season for video games in which the industry is likely pull in $10 billion dollars in revenue (toppling last year's record tally of $9.4 billion), THQ forecasts that its earnings will not meet Wall Street's expectations, causing THQ's stock to drop by as much as 22 percent. The company cites the money-eating problems on disappointing sales for Red Faction II and their GameCube titles, as well as today's $10 million settlement of a class-action lawsuit filed in 2000 claiming that higher-management manipulated their stock prices and withheld key information from investors.

Lowered forecasts and dipping stock prices are the new rage of the season as Electronic Arts and Take-Two are two of the very few companies to pull in positive numbers. Despite the strong season, the difficulty in seeing some profits is caused by cutthroat tactics between companies, a rising need for TV spots and creative marketing, retailers tendency to under stock titles and wait to see if there's demand for more (creating an industry that is fueled on hit titles and hit titles alone), and the unfortunate pit of despair known as the Game Boy Advance (few people are buying non-Nintendo published games on the handheld, which have caused the death of many small companies including Crawfish Interactive and Virtucraft).

Source: Reuters, USA Today

[Shin Johnpv]

what the hell did THQ release on the Gamecube?

[Josh]

Originally posted by Sqoon ...disappointing sales for Red Faction II

That game didn't sell well? I thought it was supposed to be good.

[Sqoon]

I think the original sold 200 - 300,000 copies while Red Faction II has probably sold around 150 - 200,000. Nothing to scoff at but since I don't work at THQ, I wouldn't really know.

Too bad, too. I liked the RFII commercial.

[Shin Johnpv]

well supposedly RFII is hitting Xbox and Gamecube soon