Brian-Farrell
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THQ CEO cautiously optimistic about 3D gaming
[Image Credit: Frank Reese] THQ CEO Brian Farrell mentioned during an earnings call call yesterday that the publisher is interested in 3D gaming and sees it as part of the industry going forward -- but don't expect THQ to be leading the pack. Considering it's finally on a path to avoiding oblivion, spending heaps of cash to add the feature doesn't seem to be part of the current plan. The executive explained, "There's some neat things we see. We need two things: We do need some additional console technology and I don't want to get into particulars on that, but more importantly and probably a little further out, is the install base of 3D-equipped TV sets or monitors." Farrell doesn't believe 3D will be "meaningful for a couple years." The company will "watch the ramp of 3D monitors" and move based on that. Right now, THQ is likely focused on the realities of its 2D financial spreadsheet.
Metro 2033 has been 'very profitable' for THQ, CEO says
Metro 2033 was released at the tail end of publisher THQ's last fiscal year, which ended March 31. With only two weeks of sales before the close of the fiscal fourth quarter, the 4A Games-developed title was not a huge factor in THQ's trumpeted turnaround. Still, THQ CEO Brain Farrell took a few moments during the company's earnings call today to highlight the game's sales to date, which contributed to fourth quarter sales growth for the publisher and could be a standout figure in its first quarter of the new fiscal year. "It's a very profitable title for us," Farrell said, without disclosing a number. Farrell did reveal that Europe has accounted for roughly two-thirds of Metro 2033 sales, as forecast by the publisher, with North America buying up the remaining units sold. "A lot of the sales were done on PC," he added, "and a lot of the sales were also done through digital mechanisms that don't get captured by any service." The CEO attributed profits to the game's low-cost development model, "so when we get to even pretty modest levels of sales, we're still making good money." (First-time, Eastern European studios make cheap games, apparently.) "And we like that model going forward," Farrell noted, when it produces a high-quality game. After all, first-time, Eastern European studios can make good, cheap games, too. (Apparently.)
Next Red Faction to be unveiled 'later this month'
THQ has never been shy about reflecting on the job it did marketing Red Faction: Guerrilla's launch. "I'd give us a 'B' on the launch of Red Faction: Guerrilla," CEO Brian Farrell admitted to investors last July. Today, on a generally upbeat earnings call -- sales are up and quality is definitely up! -- Farrell again questioned the launch of the title, but this time with a new focus, saying, "I think we did a great job on the game, I think we did an average job on demand creation." Demand creation is the new game in town at THQ's Core Games unit, and Farrell thinks the company has got this nut cracked for the next Red Faction title. "I think you'll see that in spades," Farrell said about creating that all-important demand creation for the future Red Faction. "You'll see it in the way we unveil it later this month." But it's not all about building hyp–err, demand creation -- THQ has got the SyFy movie and all those free copies of Guerrilla to help with that -- it's also about improving the quality of the game itself. Danny Bilson already told Joystiq that the next game would be more "narrative" and Farrell reaffirms that goal. "It's got a new storyline; we think that was one of the weaker points [in Guerrilla]," Farrell said. "Red Faction's always been a technological showpiece, and we wanted to add production values in terms of story and environment this year. And when you see the new Red Faction, it's just a much more appealing game universe." When can you smash this more appealing game universe, you ask? Farrell mentioned a fiscal 2011 release window, which is open now and ends in March 2011, for the as-yet-unnamed sequel ... right when Bilson told us to expect it. But first things first, we'll learn more about this new, more narrative Red Faction "later this month." And then we'll tell you. (See, that's how this relationship works.)
THQ CEO: Move & Natal games shouldn't be ports
During an earnings conference call today, THQ CEO Brian Farrell told investors and press not to expect the publisher to release ports of its existing games for Project Natal or PlayStation Move. "What you will not see is porting of games to Natal, or I don't think you should see that," he said. "I think they should be specific, standalone game experiences that exploit that very new and significant technology. And the Move is the same way: You've got to do something unique and not just an add-on with respect to that platform." Later in the call, however, Farrell did not entirely rule out ports of Wii games for PlayStation Move. When asked about the possibility of "Moving" games like De Blob (future iterations of which have been confirmed as multiplatform), Farrell said that THQ would "take advantage where we can in terms of development environments [and] take advantage of technology we already have," though he noted that because of the HD capabilities of the Xbox 360 and PS3, "just porting over those assets doesn't work." We'll see what THQ is developing with the new technologies next month, as Farrell said, "you'll like what we show at E3." Even without porting, Farrell said that development costs for Natal and Move games were lower than on traditional games, "because, again, it's not about the technology, but it's about the gameplay." The big draw for Natal titles, he said, is the "interaction with digital objects." Farrell even alluded to passing the savings on to the consumer, rather than defaulting to a $60 retail price for future HD motion games published by THQ. He said that the company is "still deliberating internally on that" and "may not even announce those launch prices until much closer to the launch" of the games.
THQ: Warhammer 40K MMO will profit with 'anywhere near' a million subs
Speaking during a financial earnings call, THQ CEO Brian Farrell said that the publisher is making a big investment with the upcoming Warhammer 40k MMO, but that if the game nets "anywhere near" a million subscribers, it will pay off. Farrell suggested that the company must spend "at the high-end of what it costs to build a core game" just to get the online title launched. But the return could be high, too: "Presuming that the MMO is successful," he said, "we could have a three-, five-, seven-year-long term revenue and profit driver with that very, very exciting brand." Even if development costs continue to climb as expansion packs and additional post-release content is created, Farrell believes that spending more money on the project is a good sign. Farrell said that "if we're investing a lot over the next five to seven years of the MMO" by adding content, "that means it's doing very, very well." Success doesn't mean you need to reach World of Warcraft numbers, either, according to Farrell. "We don't need the kind of subscriber levels that people throw around, like a million subscribers, to make a lot of money on this title. If we get anywhere near this level, we'll be making a lot of money." The EA and Mythic-developed Warhammer Online peaked out at around 300,000 subscribers by last count, so THQ has a steep hill to climb. But Farrell is convinced the company can do it. "I love the game," he told listeners on the call. "Please come by the booth at E3. I think you'll like what you see."
THQ records turnaround fiscal year, still loses $9m
THQ lost $9.6 million in its 2010 fiscal year (ending March 31), but that's nothing compared to the $431.1 million it lost the previous fiscal year. Yeah, we'd say this qualifies as a decent start in the company's proposed turnaround. THQ's software sales rose 8 percent this past fiscal year, which begin in April 2009, to $899.1 million, having established, as CEO Brian Farrell puts it, "three major core game franchises" in UFC, Darksiders and Red Faction. In a conference call this afternoon, Farrell described fiscal 2010 as the company's turnaround year. Fiscal 2011 will be its "rebuilding" year, according to the CEO, and then 2012 should see the establishment of the fully operational and financially profitable "New THQ."
Warhammer 40k devs on unusual pricing structure and WoW-killing
"WoW-killer" is a cliched term these days, and many MMO fans continue to keep a weather eye out for the game that will take down the juggernaut of the gaming world. No thanks, say the developers behind Warhammer 40k. Brian Farrell is the CEO and President of THQ, the company behind Warhammer 40k, and he has no desire to go after that title. "What we love about the Warhammer 40K MMO is that it's different in that it's a sci-fi, futuristic-based world. We're not competing directly in the orcs and elves fantasy environment that World of Warcraft is in. We can differentiate ourselves." Farrell feels that there is plenty of room for more than one great title, particularly since the game is a completely different type of MMO. In addition to addressing the WoW question, Farrell also offered up some interesting information regarding the pricing structure for Warhammer 40k, indicating that it will vary depending on what part of the world you are playing in. Warhammer40k will be revealed fully at E3 this June, but for now you can take a look at more of what Farrell had to say recently over at IGN.
THQ CEO: Saints Row and Red Faction at E3, De Blob going multiplatform
In an interview with IGN, THQ CEO (that's a lot of three-letter abbreviations right next to each other) Brian Farrell provided more details about the company's upcoming lineup. For one, we can expect to see the new Saints Row and Red Faction games as soon as E3, as well as other assorted games from THQ's lineup. "I think we're going to blow people away at E3," Farrell said. "You'll be seeing Saints Row 3. You'll be seeing the next Red Faction. You'll be seeing more of Homefront. We've been talking about it, but we'll actually show some of our Warhammer 40k MMO, and I think people are going to go, 'Oh my God. They've got their stuff together.'" And Saints Row 3 will evidently cause some to remark, "This is not your father's THQ." Farrell also suggested that THQ has learned its lesson from the last few years of the Wii market, and won't be trying anything like Deadly Creatures again -- a "fun experience" that "didn't find much of an audience." A few "brand extensions" will be shown on Wii this E3, Farrell said. And speaking of extended brands and the Wii, the executive said that the upcoming SyFy-fueled relaunch of De Blob won't just be a Wii game -- it'll be released across multiple platforms, still developed by Blue Tongue. "Actually, I prefer it on a normal controller," Farrell said.
THQ CEO calls PS3 Motion Controller 'Arc' throughout investor call
Even after all this time Sony's hand-held wand bent on bringing some of that interactive Wii game play to the PS3 still doesn't have a name. Announced at E3, Sony as recently as January 20th was still calling its PS3 Motion Controller, well, "Motion Controller" in its official communications with a footnote that the name was still tentative. Of course, we've heard whispers that it'll be called Arc -- and we're not alone. THQ boss Brian Farrell has either been reading the same sites as us or (more likely) is privy to some inside information. During an investor call, Farrell referred to the "PlayStation Arc motion controller" multiple times in both his prepared statements and in the Q&A round that followed. Remember, this is the same man who loose-lipped the Natal launch date well before Ballmer confirmed it for late 2010. Yeah, so PlayStation Arc it is.
THQ boss Brian Farrell calls Sony motion controller 'PlayStation Arc' ... a lot [update]
Now there's a name we've heard before: "PlayStation Arc." Only now instead of being bandied around as rumor, it's been uttered by someone who should know something about it -- THQ chief executive officer Brian Farrell -- multiple times during the same investor call. "We are focused on our continued leadership in [casual games], taking advantage of the lower hardware price points that we expect will attract new mass market gamers, and new family-friendly platforms such as Microsoft's Natal and the PlayStation Arc motion controller," he announced. The motion controller -- which was recently bumped back for release this fall and has yet to receive an official name -- was referred to as "Arc" by Farrell several more times, during both his prepared statement and subsequent Q&A session. Responding to a question on the company's plans for Natal and "Arc," Farrell replied that THQ "would like to be there at launch" for both motion control devices. We've contacted Sony for comment on Farrell's ... comments, but don't expect its reps to be as loose-lipped as the THQ boss. Update: SCEA's senior director of corporate communications, Patrick Seybold, responded to our request for comment saying, "We haven't announced the final name of the product and the 'Arc' is a rumored code name."
De Blob to paint the town once again
Back in early 2009, THQ hinted at more games in its De Blob franchise. In early 2010 ... it's hinting again. During an investor conference call, CEO Brian Farrell told us to expect more from its amorphous hero in fiscal 2011 (which takes place in real time between April 2010 and March 2011). The franchise has been similarly amorphous, consisting of one Wii game, one iPhone game, and one cancelled DS game. Given THQ's recent attitude toward Nintendo consoles, if we were to guess a platform for whatever this new game is, we'd go iPhone.
Darksiders, Saint's Row sequels from THQ in fiscal 2012
THQ's Brian Farrell has revealed on today's investor conference call that the company is planning to revisit some of its most successful franchises as far away as the fiscal year of 2012 (which would be sometime after March 2011), including this year's bestseller Darksiders, and the popular Saint's Row franchise. Farrell says the company is looking to fiscal 2012 for "accelerated growth with three major core game titles scheduled: Warhammer 40k Space Marine, a sequel to Darksiders and the third generation of our popular Saint's Row franchise." Given that these are more than a year away, we don't have any more information besides the fact that they're planned for release (Who will Darksiders ape next? Will Saint's Row finally solve all of those bugs?). But news of sequels for both games will be welcomed by their respective fans.
THQ prepping Homefront, new Red Faction for 'fiscal 2011'
During its annual investors conference call, THQ's Brian Farrell dropped details on that Homefront game we've been waiting on, as well as word on a new Red Faction title. Both will arrive during the company's fiscal 2011 window -- to us regular schmucks walking the streets, that's the period between April 2010 and March 31, 2011. As for Homefront, it's really not news: THQ had already said the game will arrive sometime this year or early next. However, this Red Faction business is definitely news. We'll be crossing our fingers for more wacky animal-based weaponry this time around. Oh, and more stuff to blow up. Definitely more of that, please. Both games will be shown during E3 2010 in June.
THQ CEO gives Red Faction: Guerrilla launch a B; promises to do better next time
Though "pleased" on the game's sell-through, THQ CEO Brian Farrell told a conference call on Tuesday, "I'd give us a B on the launch of Red Faction: Guerrilla." So, with a strong quarter – mostly driven by sales of its UFC game but also owing in part to RF:G – what did Farrell think THQ could do better for "the next iteration"? (What? You didn't think that was it, did you?). Farrell said, "We've shipped more than one million units of this title to date" and reported that "the game was a top 10 best seller in the US and UK in June" but admitted that THQ could have done a better job "creating day one demand." "We moved the title a couple times, that doesn't help," Farrell confessed. "I'm very pleased with a lot of the strides we've made recently but that doesn't mean we can't do some things better." Sounds like a refreshingly honest assessment to us in the press and, we imagine, to the hundreds of thousands of gamers out there who picked up the game on incredibly strong word of mouth. Farrell acknowledges as much, saying, "The amount it's been dropping off, week after week, has been something that would indicate good word of mouth on the game based on the high Metacritic ratings." Sure enough, at "85" it ranks fifth for recent releases. To make up for those ostensibly not-as-good-as-they-could've-been day one sales, THQ is looking to "drive future sales of Red Faction: Guerrilla with continued advertising support and new downloadable content," Farrell said. " We hope Red Faction has a long tail on it as we move into the holiday season." Downloadable content – which THQ has used to great effect with Saint's Row 2 – is about more than just revenue, Farrell says. "When we look at DLC, the revenue, it's not that great. It's good, but we also like the fact that it keeps the customers engaged with our games for a long period of time." Of course, this reduces trade-in and used game sales, he explains, but it also helps "keep that brand active with consumers." Which is precisely what they'll have to do if they want to keep sales up in the increasingly spartan (and sans Spartans) but nevertheless competitive holiday shopping season.
THQ's CEO joins the fun, says Natal is coming "late next year"
So, let's recap. We've got Microsoft's own Steve Ballmer on record saying that the company's Project Natal is on track for a 2010 release, a redaction of said statement, and a slimy report from overseas noting that the motion-sensing accessory is slated for a 2H 2010 launch. Just in case you needed one more modicum of evidence that Natal is headed for Christmas trees far and wide next year, THQ CEO Brian Farrell has said as much on the company's Q1 earnings call. To quote: "With respect to the cycle itself, if you look at what's happening in the industry, the fact that we have for example, Natal from Microsoft, a platform addition coming late next year." Of course, Mr. Farrell here may just be regurgitating news that he heard through the grapevine rather than inadvertently slipping the world a piece of insider knowledge, but hey, are you seriously going to question the insight of the guy who green-lit Bratz: Super Babyz? Exactly.
Ubisoft and THQ CEOs on the declining (stable?) DS market, and piracy
The CEOs of two of the largest video game publishers appeared to share completely contradictory views on one issue: the declining (or stable?) DS software sales market. Arguing one side was Yves Guillemot, CEO of Ubisoft, who blamed his company's poor Q1 showing in part on a declining DS software market. On the other side is Brian Farrel, CEO of THQ, who seemingly responded directly to Guillemot's accusation saying that "it's not a bad market."Guillemot claimed that piracy in Europe, particularly Spain, was in part to blame for the drop in DS sales. Farrell said, "I know there's been a lot of talk in Europe about piracy. We've been pleased with our DS, in particular, catalog sales. It's not a bad market." Both CEOs looked to the latest DS revision – the DSi – to ameliorate some of the piracy concerns. "For DSi, the piracy is a lot less than on the normal DS," Guillemot said. Farrell said, in keeping with his promising view of the DS market, "We think there's some growth coming with the DSi."While the PSP has certainly had its fair share of piracy over the years, Guillemot praised Sony's evolution of the machine. "The PSP has always been a machine with lots of piracy, so it's a machine we were not developing too much on because it was pirated. Now there are new ways to control the piracy so we have reinvested on the machine." That reinvestment has obviously come in the form of Assassin's Creed: Bloodlines. "It'll be interesting to see how the PSP business continues with Sony's new entry," Farrell said, referring to the PSP go. "But we're not seeing any major trends in the handheld business between the DS, PSP, and even the iPhone that are affecting our overall outlook at this time."Ubisoft, for its part, is looking for other, unique ways to curb piracy on platforms like the DS. "We are working to put new figurines and new elements in the box that will change [the impact of piracy] in the future but in the short term it's effecting us," Guillemot said. It'll effect you a lot less if you bundle some of those adorable Rabbid figurines with every game you ship. Just sayin'. [image credit]
THQ and Ubisoft CEOs on console price cuts
With back to back conference calls this week by Ubisoft on Monday and THQ on Tuesday, we were treated to CEO-level insight into on some of the issues facing the gaming industry. Both Yves Guillemot from Ubisoft and Brian Farrell from THQ addressed the looming console price drops and we dutifully scribbled down every word. Both agreed it wasn't their place to confirm any price drops. "We can't comment because it would depend very much on how those guys sell their machines and how ... they can decrease the price of those machines," said Guillemot. "Obviously we'll let the hardware guys announce the magnitude and timing [of a price cut]," said Farrell. But just because they're not going to confirm a price drop doesn't mean they're not going to share their company's opinions on whether one is coming or not. "We think the battle between the three manufacturers will really be very fierce this year. All of them will really push hard to get this Christmas sale," Guillemot said in rough English. "They will act, we think." Farrell was a little more specific: "The fact that Nintendo Wii is still at its launch price and PlayStation 3 is still at a relatively high price point by historical standards ... just look at the hardware numbers and it would seem that a price cut would be in order by at least two of the three manufacturers." While Guillemot ended the price cuts discussion with hopeful remarks about the effect console price drops would have on his software business – "if the machines are going down in price, we can see a big increase of sales on all the machines" – Farrell was a little more direct stating, "Price cuts, again – they are factored into our guidance, our internal model. We do anticipate price cuts coming this Fall ... something on the higher end of the range certainly wouldn't surprise us."Well, with all this chatter, it wouldn't surprise us either, Brian. Drop your best estimates in the comments.
THQ has had Project Natal 'for some time'
With Microsoft revealing Project Natal earlier this month, we've seen some of the things Microsoft and its studios are doing with the peripheral (not to mention the talent enlisted), but what about third parties? We know of at least one developer who has had Natal, and that's THQ. CEO Brian Farrell reveals (via G4) that his company has "had kits for some time," somewhere around "4, 6 weeks, however long they've been available." While not confirming any projects yet, Farrell did say that top men (top men) in his company have been checking out Natal and brainstorming.
THQ reorganizes management into three distinct divisions
The "New THQ" keeps rolling forward as the company reorganizes to support three key strategies: Core, "Kids, Family and Casual" and Online. The business units will each have an executive vice president who reports to THQ CEO Brian Farrell.The new alignment certainly makes it very clear whose head goes on the platter when a division is failing. Or, in the more polite words of CEO Farrell, "The new structure specifically aligns our primary business units with our product strategy, enabling each team to focus on planning and execution in highly defined product areas with full profit and loss responsibility." Of course, if all three divisions fail -- which has been THQ's fate of late -- we expect those new branches of the company will be getting a new boss.
THQ achieves cost savings goal (thanks, everyone who got fired!)
Intercepted communiqué from THQ to all former employees:Dear Fallen Comrades,We thought you'd like you to know that your removal from the ledger helped us achieve our goal of removing $220 million from the budget. Isn't that awesome?! Our illustrious leader, CEO Brian Farrell, would like you to know that your former employer's goal to reach "profitability and generate positive cash flow" will hopefully occur in fiscal 2010. In the meantime, we expect to announce $45 million in business realignment expenses, $4 million in severance and "other employee-related costs" and $41 million in "impairment charges" related to cancellation of games and studio closures.Best of luck in finding new jobs.XOXO,Your Former & Ever-loving Employer
