The fall comes largely due to their risky gamble on HD versions of uDraw, a gamble which saw THQ lose roughly $30 million.
They reported a net loss of $55.9 million, 82 cents a share, for the third fiscal quarter.
THQ saw success with the title on the Wii and made HD versions for the Xbox 360 and PS3 thinking it would follow that trend but THQ had to eat it as uDraw bombed on those platforms.
Now THQ is transitioning into a smaller company, 240 staff have been cut and CEO Brian Farrell is getting half of his overall pay cut going from $718,500 to $359,250 in the next year.
Nasdaq is threatening to delist the company unless they can pull their stock above a buck a share by the end of July. That means THQ has to get their shit together and soon.
But they’re looking into the ash pile for some glimmer of hope taking the news head on saying a smaller company will make it more agile to respond to the market.
“With our focused product plan, leaner cost structure, cash balance and existing credit facility, we believe the company has adequate resources to deliver on our strong multiyear pipeline of games,” Farrell said after the news broke.