THQ Inc. shares fell on Wednesday after the video game publisher announced it will stop developing licensed games geared for children to focus on its core franchises and digital initiatives.
The Agoura Hills company will no longer create games based on popular children’s brands such as Nickelodeon’s SpongeBob Squarepants and Pixar’s Cars. Instead, it will focus on developing original games such as its action series “Saints Row.”
“THQ will be a more streamlined organization focused only on our strongest franchises,” Chief Executive Brian Farrell said in a statement.
The company plans to report fiscal third quarter earnings on Feb. 2.
Shares closed down 3 cents, or 4 percent, to 71 cents on the Nasdaq.