THQ profits climb on UFC and Red Faction

For the fiscal first quarter ended June 30, 2009, THQ said that its net sales climbed 77 percent to $243.5 million from $137.6 million in the prior year. On a non-GAAP basis, for the three month period that ended June 30, 2009, the company reported net sales of $233.9 million, up 93 percent from $121.1 million a year ago. Fiscal 2010 first quarter net sales were driven primarily by UFC 2009 Undisputed and internally developed and owned intellectual property Red Faction: Guerrilla.

For the three months ended June 30, 2009, the company reported net income of $6.4 million, or $0.09 per share, compared with a net loss of $27.2 million, or $0.41 per share, in the prior year. On a non-GAAP basis, for the three months ended June 30, 2009, the company reported net income of $6.9 million, or $0.10 per diluted share, compared with a non-GAAP net loss of $25.4 million, or $0.38 per share, in the same quarter a year ago.

Yesterday THQ announced that it prevailed in a binding arbitration with JAKKS Pacific. The arbitrator established a new preferred return payment rate to JAKKS Pacific for WWE video games sold under a license granted by World Wrestling Entertainment. to THQ/JAKKS Pacific LLC. The new rate, which is 40 percent below the previous rate, is effective as of July 1, 2006 and applies through December 31, 2009. As a result, the company expects to report a one-time benefit of approximately $23 million during the fiscal 2010 second quarter ending September 30, 2009, and to reduce its accrued venture partner expense on its balance sheet by the same amount.

Looking ahead, the company expects fiscal 2010 net sales to exceed those reported in fiscal 2009, on a non-GAAP basis, compared with its previous expectations of fiscal 2010 net sales that approximated fiscal 2009 net sales. The company also expects to achieve profitability for fiscal 2010, on a non-GAAP basis, compared with its previous goal of targeting profitability for the year. The company reaffirmed its expectation that its fiscal 2010 year-end cash balance will be at least $50 million higher than at the end of fiscal 2009, excluding payments currently payable to JAKKS Pacific.

THQ has no new titles scheduled for release during the fiscal 2010 second quarter. It expects to report net sales in the range of $85-$95 million, on a non-GAAP basis, compared with $151.6 million in the prior-year period. As a result of the company’s cost cutting efforts, THQ expects to report a smaller operating loss, on a non-GAAP basis, than reported in the same quarter last year. The second quarter and full year non-GAAP outlooks exclude the expected one-time benefit of approximately $23 million from the JAKKS arbitration.

UFC president trash talks EA over MMA game

UFC president Dana White is no shrinking violet when it comes to speaking his mind. In the past he has taken many of his top fighters to task in the public forum over contracts, pay and their attitudes. But this week he has a new target: Electronic Arts. According to mmajunkie.com, Dana White has told UFC fighters that if they sign on to star in EA’s upcoming MMA fighting game that they will not be welcomed in the UFC -0 in fact they will be blacklisted.

White’s anger with EA, which he says he is going to war with over its new mixed martial arts game, stems from a conversation he had a year and a half ago with EA about creating a UFC fighting game. Back then, according to White’s recollection, EA told him that MMA fighting was not a real sport and that they would not touch a product like that. Flash forward and EA seems to have a had a change of heart. Seeing the success of THQ’s UFC Undisputed seemed to have had a profound effect on them.

“I’m not tap-dancing around this thing or whatever,” White said in an interview with MMA Junkie. “I’m telling you straight-up, I’m at war with EA right now. That’s how I look at it.”

“EA doesn’t give a [expletive] about mixed martial arts. They made that very clear.”

Of course, to be fair, it’s not like the UFC is the only mixed martial arts organization in the world and it’s also not like THQ, makers of UFC Undisputed, have worked closely with White’s organization over the years. Prior to this latest game, THQ worked closely with PRIDE and Crave Entertainment was actually the first company to have to guts to make MMA games - back in the Dreamcast days.

We’ll follow this story as it continues to develop.

Prototype dominates UK sales charts

Prototype was the top selling game in the United Kingdom, according to ELSPA’s Chart Track for the week ending June 20, 2009 - up from the number two spot the week prior. The Sims 3 was knocked out of the top spot by Activision’s super hero action game, while Red Faction: Guerilla was pushed out of the number three spot by Wii Fit and the debut of the new Ghostbusters game, falling all the way to number six.

Meanwhile, UFC 2009 Undisputed fell two spots to number seven, while Call of Duty World at War rose from number seven to number five. EA Sports Active was down two spots to number eight, while Virtua Tennis 2009 cracked the top ten at number nine and Grand Slam Tennis managed to land at number ten.

The rest of the top twenty can be found below:

UK Retail Sales - June 20, 2009

1 PROTOTYPE
2 THE SIMS 3
3 WII FIT
4 GHOSTBUSTERS: THE VIDEO GAME
5 CALL OF DUTY: WORLD AT WAR
6 RED FACTION: GUERRILLA
7 UFC 2009: UNDISPUTED
8 EA SPORTS ACTIVE
9 VIRTUA TENNIS 2009
10 GRAND SLAM TENNIS
11 PROFESSOR LAYTON AND THE CURIOUS VILLAGE
12 FIFA 09
13 INDIANA JONES AND THE STAFF OF KINGS
14 MARIO KART WII
15 CALL OF DUTY 4: MODERN WARFARE
16 POKEMON PLATINUM
17 GUITAR HERO: METALLICA
18 INFAMOUS
19 ARMA II
20 RESIDENT EVIL 5

Leisure software charts compiled by Chart Track

The Sims 3 rules UK retail charts

The Sims 3 and Red Faction Guerrilla have managed usurp the top two spots on the UK charts from UFC 2009: Undisputed and Pokémon Platinum, pushing Nintendo’s popular Pokémon title to number 7 on the charts, and THQ’s fighting game to number 3. This is according to retail sales data from UK based research firm Elsa’s Chart Track.

EA Sports Active fell on spot top number 4, while Wii Fit moved up one spot to number 5 and InFamous fell by one spot as well. Rounding out this week’s top ten were the aforementioned Pokémon Platinum at number 7, followed by Guitar Hero: Metallica, Virtua Tennis 2009 (being released in North America this week) and Terminator Salvation. Top twenty for the week ending June 6, 2009 can be found below:

All Formats - Week Ending June 6, 2009

1 THE SIMS 3 - EA GAMES (new)
2 RED FACTION: GUERRILLA - THQ (new)
3 UFC 2009: UNDISPUTED THQ (last week #1)
4 EA SPORTS ACTIVE - EA SPORTS (last week #3)
5 WII FIT - NINTENDO (last week #6)
6 INFAMOUS - SONY COMPUTER ENT. (last week #5)
7 POKEMON PLATINUM - NINTENDO (last week #2)
8 GUITAR HERO: METALLICA - REDOCTANE (last week #4)
9 VIRTUA TENNIS 2009 - SEGA (last week #8)
10 TERMINATOR SALVATION - EVOLVED GAMES (last week #11)
11 FIFA 09 - EA SPORTS (last week #7)
12 FUEL - CODEMASTERS - (new)
13 CALL OF DUTY 4: MODERN WARFARE - ACTIVISION (last week #13)
14 MARIO KART WII - NINTENDO (last week #12)
15 SACRED 2: FALLEN ANGEL - DEEP SILVER (new)
16 CALL OF DUTY: WORLD AT WAR - ACTIVISION (last week #15)
17 MY FITNESS COACH - GAMES FOR EVERYONE (last week #16)
18 STAR OCEAN: THE LAST HOPE - SQUARE ENIX (new)
19 WII PLAY - NINTENDO (last week #10)
20 MYSTERY STORIES - GSP/AVANQUEST (new)

UFC Cuts Fighter Over THQ License

THQ, already known for its hit WWE SmackDown vs. RAW series, apparently has enough stroke to even put the fighters of the Ultimate Fighting Championship down for the count. According to a Sports Illustrated report, UFC fighter Jon Fitch has been terminated from the franchise (along with many of his American Kickboxing Academy teammates) for refusing to sign away rights to his image for use in THQ’s upcoming UFC video game.

According to the report, the problem stems from UFC’s requests that fighters sign a merchandising deal giving the UFC rights to use fighters’ likenesses in various licensing deals for life. The issue with Fitch apparently finally came to a head when he was approached with the THQ deal.

Read the rest of this entry »

THQ’s Fight Game Trio

THQ is showing three new fighting games at E3 this week, and today the company offered some broader details on each. WWE SmackDown vs. Raw 2009 is getting a more refined cooperative play mechanic across the board, if you believe the hype coming out of L.A. The game will offer new tag team finishers, and a new “hot tag” feature which gives your team the momentum to finish the match quickly. The other interesting feature is co-op storyline, which lets players take on the story mode together for the first time since that awful Xbox game RAW 2. Finally there’s a new create a finisher mode, which let’s you create the end all be all move.

THQ also announced additional details about WWE Legends of WrestleMania, a brand new video game property currently in development for the Xbox 360 and PS3. The game aims to bring home the oldsters who remember the 80’s and 90’s when the WWE was still the WWF and Hulk Hogan, Andre The Giant and Macho Man Randy Savage were ruling the roost. The game will feature forty WWE legends, recreations of historic matches and events, a new grappling system, Create-A-Legend mode, and online play. WWE Legends of WrestleMania is scheduled for release in March 2009 to coincide with WrestleMania 25 in Houston, Texas on April 5, 2009.

Finally, first details on UFC 2009 Undisputed have been revealed. The game based on the popular mixed martial arts sport will feature the top stars in multiple divisions, a new fighting system that will be easy to pick up and play, a create-a-fighter mode, character development, and a single player story mode that challenges players to fight their way to the UFC Hall of Fame.

Check out our E3 Hub Page for the latest features and commentary from the Crispy staff.

UFC Game Named, Dated

THQ today announced that its new Ultimate Fighting Championship game, UFC 2009 Undisputed, will be released in spring 2009 for the Xbox 360, PS3,and mobile devices. The game, which is based on the popular mixed martial sporting event, features 80 top fighters in UFC competition across all five weight classes using a multitude of martial arts disciplines like Muay Thai, Kickboxing and Brazilian Jiu-Jitsu and more. The game will also feature all the commentators, announcers, referees, trainers, Octagon girls that you’d expect to see when watching a UFC “event.”

And that what THQ is trying to push here with this game - a home experience that puts you in the heat of a live event as a combatant. Finally THQ says that they have created an all new fighting engine to power this game, though details on it were not availablre at press time. The company will also include a create a fighter mode, various single-player modes and the promises of future downloadable content.

It has been awhile since there has been a UFC videogame from THQ, so here’s to hoping that the company behind the WWE video games will do it right the first time. You can learn more about the game by visiting www.thq.com….