THQ, the publisher desperate to shake the "struggling" tag that has been shadowing it for the past 12 months, took a giant step forward today by announcing a USD $15.4 million profit for the April-June quarter.
It's a total revelation compared to the USD $38.5 million loss it posted during the same period last year, and suggests its fortunes may be about to turn.
However, THQ isn't in the clear yet. Much of the profit has been generated by severe cost-cutting. It spent just USD $38.5 million during the quarter, just half of the USD $67 million spent in the corresponding period last year.
Operating expenses were cut by closing studios, downsizing, reduced marketing, and cancelling a number of games to focus on its core franchises.
It also had to issue a reverse float to keep its stock valued over $1 on the US NASDAQ stock exchange to consolidate every ten shares into just one.
Nevertheless, a profit can only be good news.
By Ben Salter