THQ CEO Speaks About Innovation

THQ hasn’t always been known to produce some of the best games out there. For a long time, THQ’s main strategy has been to license popular movies and tv shows and turn them into video games, which hasn’t turned out that profitable. However, according to CEO Brian Ferrel, THQ may be looking to innovate in more ways than just a new logo.

Mr. Farrell recently  commented during an investor’s conference call that the “see the movie, play the game” single-player experience that his company once focused on was no longer successful. He explained how he wanted the company to move in a new direction by instead focusing on the younger audience. In this, he referenced the uDraw tablet released last year. The uDraw tablet,  according to the company’s quarterly financial results, shipped 1.2 million units between November launch and the end of the year. However, THQ still reported a quarterly loss for the 2010 holiday season.

Farrell said, “The single-player kids’ games, particularly those based on movie licenses, were the ones that showed the most weakness. What we learned this holiday season is new stuff, innovative stuff… you do something new and consumers, especially kids, respond to that.”

In addition, Farrell pointed out that THQ is looking towards the critically acclaimed de Blob as a franchise that needed further growth. The company hopes for strong sales for the upcoming de Blob 2 will be launching on multiple consoles simultaneously, including 3D support on the Playstation 3. Recently, THQ quarterly earnings fell 11.8% from $356.7 million to $314.6 million. The company reported a net quarterly loss of $14.9 million compared to $542,000 in profit during the same period in 2009. The losses were partially due to a $30.3 million charge incurred from lowered performance expectations of the aforementioned licensed titles.

Hopefully, THQ will embrace innovation, as it may save them from selling out in the long run.

(Source: Nintendo World Report)

6 thoughts on “THQ CEO Speaks About Innovation”

  1. The uDraw tablet is pretty cool in that you can draw on the Wii, HOWEVER the DS is perfect for that and I don’t know why Nintendo hasn’t capitalized on that.

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