THQ Sold UFC License Because It Lost Money

[MMChrisS]

While it appeared on the surface to be a success, Gamasutra is reporting this morning that the reasoning behind the sale of the UFC license from THQ to EA was the simple fact that it lost money for THQ:

Quote:

"THQ management told Wedbush analyst Michael Pachter that UFC Undisputed 3, which released for Xbox 360 and PlayStation in February, fell short of hitting its break-even point of 2 million copies sold. That was in spite of UFC Undisputed 3 becoming the third biggest-selling game in the U.S. in February, and THQ previously noting the title received better-than-expected sales. The series' second most recent release, UFC Undisputed 2010, also underperformed."

This is actually quite shocking because as the article mentions, THQ seemed to be excited about the titles' performances over the past few years. Now to have it come out that the UFC titles underperformed and actually lost money, well if I were a THQ investor I'd be pulling my money out of the company not knowing how other big box titles are performing at this point.

The question now becomes, how secure is THQ's hold on the WWE license? Some things to ponder for sure.

[aholbert32]

LOL! Why would THQ expect UFC 3 to sell 2 million copies? What sports games not named Madden, NBA2k and Fifa sell 2 million copies.

[CM Hooe]

I'd say from my completely uneducated opinion that THQ's hold on the WWE license is tenuous at best, and that they are reviving the Attitude Era for WWE 13 now makes perfect sense.

[Gotmadskillzson]

Yeah they were fooling themselves if they thought they were going to sell 2 million copies.

[a2ndrgmaster]

Quote: Originally Posted by aholbert32

LOL! Why would THQ expect UFC 3 to sell 2 million copies? What sports games not named Madden, NBA2k and Fifa sell 2 million copies.

Undisputed 2009 sold 3.5 million... 2 million isn't that bad of an expectation.

Edit: UFC 2010 sold 2.4 million

[Profit89]

These guys lose money even when a game sells better than they expected. Yikes !

Not very good business sense at THQ.

[TheShizNo1]

Quote: Originally Posted by a2ndrgmaster

Undisputed 2009 sold 3.5 million... 2 million isn't that bad of an expectation. Edit: UFC 2010 sold 2.4 million

I think had 10 not sucked so bad, 3's sales would have been around 2009's.

[aholbert32]

Quote: Originally Posted by a2ndrgmaster

Undisputed 2009 sold 3.5 million... 2 million isn't that bad of an expectation. Edit: UFC 2010 sold 2.4 million

UFC 2010 sold 2.4 in two years after a price drop. THQ expected 3 to sell 2 million in 4 mos w/o a price drop? Really?

[goh]

I posted in the non-sports gaming about the company being in trouble and one of the articles said the UFC and WWE lisences were very possibly each worth more than THQ itself. So yah they'd probably lose money.

[mpt54]

If THQ loses the WWE license I wonder who would pick it up?