Earlier this week, word got out that THQ's subpar execution had resulted in studio closures and job cuts.
THQ confirmed to stock holders on Wednesday the closure of five internal studios, adding that it reduced development personnel by around 250 people, or 17 percent of its studio staff.
The publisher also said that it is cancelling "several" unannounced titles that were in development.
THQ said it will strategically realign, focusing on "fewer, higher quality titles."
The company also reduced fiscal 2010 forecasted annual product development spend by $100 million.
The news came in the company's Q2 earnings release, where THQ announced net sales of $164.8 million, down from $229.3 million a year ago.
The firm announced a net loss of $115.3 million, a massive increase from a net loss of $7 million a year ago.
THQ reduced its guidance for the fiscal year ending in March due to the delay of Red Faction: Guerilla and Darksiders: Wrath of War from fiscal 2009 to fiscal 2010, accounting for $125 million in lower forecasted net sales.
Other factors in the lowered sales forecast include foreign currency exchange rates ($80 million lowered) and an unsure retail environment ($70 million lowered).
For the full fiscal year, THQ expects net sales in the range of $875 million to $900 million. Earnings are expected to be break-even in the second half of the fiscal year.
Q3 sales are forecasted to be $400 million to $420 million with net income per diluted share in the range of 5 cents to 15 cents.
via Edge
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