THQ defends studio closures
by Steve Watts, shacknews.com, Sep 8, 2011 4:15PM PDT
THQ recently shifted its corporate strategy towards fewer, but more focused releases. On the down side, this resulted in studio closures, project cancellations, and layoffs. Executive vice-president and CFO Paul Pucino spoke to investors at a technology conference today, and defended the company's decision.
"The two we just shut in Australia were working on games that aren't consistent with our strategy anymore - one on a movie tie-in, one on a kids' game," said Pucino said, according to Edge. "Our strategy now is bringing fewer, bigger triple-A titles to market: one or two original IPs each year, and sequelling them every two to two-and-a-half years."
The strategy places increased pressure to perform on the Montreal studio, which Pucino says "will grow from 150 to 400 employees in the next couple of years." This will help them make games for 40% less than other studios, according to THQ, and Pucino stressed reducing the cost of bringing games to market.
To put investors' minds at east, THQ expects the quarter ending December 31 to be one of its biggest, with heavy sales projected for Saints Row: The Third and uDraw for PlayStation 3 and Xbox 360. The Montreal studio is working on at least two games, hence the heavy growth plan, and also gained the Homefront franchise.