THQ Loses Millions, Plans Layoffs

The US recession is lashing out at the video game industry once again, with publisher THQ now announcing major third quarter losses along with plans for additional layoffs.

The third quarter results published by THQ showed a loss of $9.6 million, or 14 centers per share.  Revenue also fell to $357.3 million from $509.6 million.  As a result of the downturn from a profitable third quarter just a year earlier, THQ has announced that additional layoffs are planned.  At least 600 jobs, or about 24% of THQ's workforce is expected to be on the receiving end of a pink slip in coming months.

In a recent conference call held by THQ, CEO Brian Farrell commented "This is one of the most challenging holiday retail environments I have experienced in my 18 years at THQ", in regards to the current economic environment faced by the company.

THQ currently owns and publishes computer and console games from eleven studios, including Volition, Inc., Relic Entertainment, and Big Huge Games.  Exact details regarding how the layoffs will fall have yet to be announced, leaving to question if the development or publishing sectors will be hit the hardest.