THQ chief financial officer Paul Pucino has said a game like Homefront needs to hit the two million milestone to recoup costs.
“When you just think in terms or profitability, the owned IP, there’s a threshold of break-even of about 2 million units per game,” Pucino said during the briefing.
“So you have to sell somewhere in the area of 2 million copies of a game like Homefront to break even. Once you get past that you’re generating incremental operating margins as high as 60 per cent.”
When you don’t just think of profitability, you think of establishing a franchise – as THQ has repeatedly stated it intends to do.
Analysts believe THQ has shipped 1.5 million units of the game to retail.
For comparison purposes, the original Dead Space – another new IP destined to kick off a series – sold over two million units in just under two years, with EA’s John Riccitiello saying the series wouldn’t hit the five million mark until the third entry.
Thanks, Industry Gamers.