THQ Announces Huge Losses

Tough economic times have struck another video game company. This time it’s THQ, who’s announced a $191.8 million net loss over 3 month span lasting from October to December 2008. Last year THQ posted a 15.5 million dollar net profit in the same period last year.

THQ has been behind popular PC titles such as Saints Row 2 and Warhammer 40,000: Dawn of War II, and according to the company, they plan to reduce their cost structure by $250 million, $70 million of that will come from the sales of studios, with the rest coming through a reduction in spending on things such as marketing and corporate spending.

With an expected cut in expenses by that large amount, of course layoffs are going to follow. THQ estimates 600 total layoffs, which accounts for a whopping 24% of their entire workforce.

News such as this is not surprising. Companies around the country are announcing net losses, or a decreased net profit from years past. As the economy struggles along, video game companies are going to feel the heat. THQ isn’t the first, and they won’t be the last.