THQ Shares Fall on Video Game DelayOriginally published June 20, 2012 at 10:18 a.m., updated June 20, 2012 at 3:14 p.m.
Shares of THQ Inc. fell more than 4 percent Wednesday after the struggling video game developer said it would delay a planned expansion pack for its "Saints Row: The Third" series and instead incorporate it into the next sequel.
The Agoura Hills company said that "Enter the Dominatrix" will not be released as planned in September. That will shift about $20 million in sales from the current fiscal year into next year and add about 3 cents a share to its non-GAAP net loss.
An expansion pack is a lower-cost addition to an existing video game, usually extending a story line and adding game areas, weapons and other features.
THQ President Jason Rubin characterized the move as a positive for Saints Row fans, and that it made sense for the company to take a short-term hit to sales in order to create a better sequel. Rubin, co-founder of the Santa Monica game developer Naughty Dog, joined THQ last month as the company was completing another round of staff cuts and studio closures to refocus its business.
"When it comes to Saints Row, it's clear our fans want bigger, better, and even more over the top, and that's why ‘Enter The Dominatrix’ will now be incorporated into a vastly expanded, full-fledged sequel, scheduled for calendar 2013," said Rubin in a statement.
Shares were down 3 cents, or 4.5 percent, to 67 cents on the Nasdaq.