Michael Pachter: THQ Struggling to Break Even on Darksiders II

October 30, 2012 -

While THQ's Darksiders II has sold an estimated 1 million copies so far, Wedbush Securities analyst Michael Pachter says that the game is having a very hard time making it past the 2 million milestone it needs to reach for THQ to break even on the title.

"Darksiders II's performance and a history of game delays and cancelations leaves us skeptical that THQ can successfully execute its turnaround strategy, which centers on a streamlined release slate," says Pachter.

He goes on to say that THQ's decision to drop two high-profile projects - InSane from film director Guillermo del Toro and Devil's Third from Valhalla Game Studios, the new studio created by former Ninja Gaiden director Tomonobu Itagaki - could prove to be a potential problem for THQ as it looks to boost its revenues with new releases. He goes on to predict that THQ will beat analyst estimates of around $75-85 million in revenues when it reports second quarter earnings on November 5, even with software sales down 18 percent during the July-September months compared to the same period last year. Still, he warns investors to be cautious with THQ because its management has a "history of missteps."

One thing Pachter does not mention is how the latest WWE game - WWE 13 - and future DLC related to it will impact the company's bottom line... WWE 14 was released today on PS3 and Xbox 360 today in North America.

Source: Gamasutra


Comments

Re: Michael Pachter: THQ Struggling to Break Even on ...

DS2 is not bad a bit generic but not bad, and THQ has a ton of issues this game probly made up for itself just not for everything else that they wasted money on.

 

Oh and Warfighter looks to fail hard.


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Re: Michael Pachter: THQ Struggling to Break Even on ...

Well, we know the Pachter rule - he predicts doom for DS2, so DS2 will soon do awesome.

--- With the first link, the chain is forged.

Re: Michael Pachter: THQ Struggling to Break Even on ...

Unfortunately, as much as I wanted to like this game, it really had nothing on the first one. I finished the main campaign still with parts of the world to explore and things to do, but I really have no incentive to do it. I happily did this with the original.

 
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