Analysts weigh in on Homefront's potential profitability
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Homefront has had an interesting ride so far. Touted as THQ's most pre-ordered game in company history, it debuted to middling reviews (ours included), which seemingly triggered a massive decline in THQ's stock price. Still, despite reviews, THQ announced over 375,000 units in first day sales. It's also worth noting that both Amazon and Walmart knocked $20 off Homefront the day after it released, which probably aided sales as well.
Whether or not Homefront proves profitable for THQ, well, that's where analysts come in! Speaking to Benzinga, Wedbush Morgan's Michael Pachter noted that THQ would need to move two million units to break even. In light of the need to move in excess of two million to yield a profit, Pachter called day one sales "a disappointing start," adding that poor reviews could lead to stagnating sales moving forward. That said, Pachter does expect the title to at least break even.
Bradley Safalow of PAA Research pins Homefront's low review scores on its short single-player campaign. Had the campaign been two to three hours longer, said Safalow, "then it could have achieved a Metacritic of 80." Safalow believes Homefront could bring in a "modest profit" for THQ, though he has much higher hopes for Saints Row: The Third.
Finally, Wall Street Strategies' Brian Sozzi expects Homefront to meet THQ's overall sales goals with the help of downloadable content. Like Safalow, Sozzi's firm is also "optimistic" regarding Saints Row: The Third and Red Faction: Armageddon.
Whether or not Homefront proves profitable for THQ, well, that's where analysts come in! Speaking to Benzinga, Wedbush Morgan's Michael Pachter noted that THQ would need to move two million units to break even. In light of the need to move in excess of two million to yield a profit, Pachter called day one sales "a disappointing start," adding that poor reviews could lead to stagnating sales moving forward. That said, Pachter does expect the title to at least break even.
Bradley Safalow of PAA Research pins Homefront's low review scores on its short single-player campaign. Had the campaign been two to three hours longer, said Safalow, "then it could have achieved a Metacritic of 80." Safalow believes Homefront could bring in a "modest profit" for THQ, though he has much higher hopes for Saints Row: The Third.
Finally, Wall Street Strategies' Brian Sozzi expects Homefront to meet THQ's overall sales goals with the help of downloadable content. Like Safalow, Sozzi's firm is also "optimistic" regarding Saints Row: The Third and Red Faction: Armageddon.
Reader Comments (7)
Posted: Mar 21st 2011 8:10PM TOYBOXX said
Sounds like THQ is doing everything they can to appease the shareholders by announcing early sales figures along with telling big retailers like Walmart and Amazon to knock-off $20. And for the time being it worked. But for how long?
It would be surprising to see if Homefront will actually break even in profits. Personally, I've already gotten rid of the game for trade-in credit. And I'm sure most other gamers have done the same. Was Homefront worth $60 - HELL NO!
It would be surprising to see if Homefront will actually break even in profits. Personally, I've already gotten rid of the game for trade-in credit. And I'm sure most other gamers have done the same. Was Homefront worth $60 - HELL NO!
Posted: Mar 21st 2011 9:58PM Marco le Polo said
Wait didn't THQ stocks drop 25% the day this was released?
Posted: Mar 22nd 2011 4:04AM soulseekerUK said
great idea just very generic in execution (gfx remind me of a suped up psx game) was hoping for something to replace bf2 bc but looks like i wait till bf3 comes out. worth a rental but doesnt warrant £50.
Posted: Mar 22nd 2011 9:53AM MRL3G3ND said
idk know how these companies expect to make blockbuster profits without a blockbuster product. I was behind KAOS as a fan of frontlines:FOW...but it looks like they failed at everything they tried to do; or it was half assedly implemented.
Gimme a break...it's been a week and we still can't play online right. Failure deserves it's consequences. We all have to learn someway
Gimme a break...it's been a week and we still can't play online right. Failure deserves it's consequences. We all have to learn someway
Posted: Mar 22nd 2011 6:23PM iceveiled said
There's no way Homefront is going to sell 2 million copies at its current price...it has way too much bad publicity one whole week after launch.
It might eventually sell 2 million at abargain bin rate, but then it would need to sell alot more than 2 million units to break even.
Tough Break, THQ. Maybe you should QC your developers and not let them ship multiplayer betas with tacked on single player campaigns....
It might eventually sell 2 million at abargain bin rate, but then it would need to sell alot more than 2 million units to break even.
Tough Break, THQ. Maybe you should QC your developers and not let them ship multiplayer betas with tacked on single player campaigns....
Posted: Mar 22nd 2011 9:41PM Migz7 said
I haven't played much of the single player but I'm enjoying the multiplayer. It controls well and the vehicles and special weapons are fun to use. The one thing that's kind of a bummer is that the game ain't the prettiest girl in the room. But it has a smooth frame rate and bullets hit what you aim at... very important in an online shooter.
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