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THQ Sold UFC To EA Because It Wasn't Profitable

When EA announced that it had acquired the UFC license at its EA press conference, many wondered how it had wrangled it away from THQ, which held the rights to video games based on the popular mixed martial arts league.

According to game industry analyst Michael Pachter of Wedbush Morgan, key executives at the company told him that THQ voluntarily sold its exclusive license to EA after its recent UFC 3 failed to break even. The game did not sell in excess of 2 million copies, the number that was required to be profitable for THQ.

This move was part of a broader strategy by THQ to emphasize profitability on every title it releases. In recent months, the company has made several drastic business moves, including a couple of rounds of significant layoffs, letting go of president Danny Bilson and hiring Naughty Dog co-founder Jason Rubin to take his place.

Source: Gamasutra

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Comments
  • Solds??? I think you might mean sell :)
    Oh.. my first first... xD

    Edit:

    Yes.. I know they corrected it, whatever. I just pointed it out so that they could change it.
  • I had two friends that liked this series. Two is enough to make a profit, right?
  • Wow, it really didn't sell all that well? I'll say because THQ did no marketing for it that I can remember lol. But hey the way things are going THQ will probably no longer exist in a year. *I really hope I'm wrong on that btw*
  • Selling an IP to EA is the industry equivalent of selling your puppy to Cruela DeVil.
  • They're better than most sports games. EA will probably have the Origin logo on everything though.
  • Well there goes my hope that THQ could pick up a bunch of games which had cult followings but couldn't get sequels.

  • The problem with an MMA videogame is that the sport may be one of the fastest growing sports in the world, but the fan base is still relatively small and the number of MMA fans that are also gamers is probably rather low so you can't count on large sales, but you can't really afford to cut costs by cutting back on the number of fighters in the games, or by trying to cut corners on programming. The last UFC game I played was 2009 and I remember being confused about countering a spinning back punch with a hook that ended up catching the enemy in the back between the shoulders, which would result in a KO with the mouthpiece flying out, so THQ probably still needed to do fine tune the programming so an MMA game really is quite risky.
  • The games and the actual ufc suck. If i wanted to watch 2 dudes hug each other on the mate for 2 minutes, i'd be easily amused...or gay. Which i am neither.
  • I thought the game sold well apparently it did not

  • Too bad

  • I wonder how much they got for it =P

  • I don't think the problem is a lack of a market; it's that the first game was good, and then the series didn't improve, and in some aspects got worse, with each new iteration. The first game is still the best in the series.
  • That's too bad

  • Well I certainly am not interested in an MMA game so, give more by THQ IMO.

  • Maybe it would have been profitable if any of the 3 THQ/UFC games were released without being completely broken.  Fool me once shame on you.  Fool me twice shame on me.  Surprise surprise people wern't lining up to be fooled a third time.

    And for the record, the third one is completely unplayable bc of a bug that makes the match disconnect if you clinch or go to the ground.  THQ claimed to be working on a patch to fix this problem since October.  As recently as last friday their community manager announced the patch is days away from being sent off to sony and ms.  Now that they've jumped ship the plans to release the patch are scrapped.  The loyal customers of THQ that waited/wasted 8 months for them to fix their stupid game are *** out of luck.

    After seeing how this company operates, something tells me that unloading the UFC lisence isn't going to save them.

  • I loved the first, the second was a big dissapointment. I was patiently waiting for a huge price drop before picking up UFC3. I guess I won't get it now, I'll just wait for EA to release its game. Can't wait for them to show what they've been working on, even though it may be a while.

  • How much did it cost to make? Because...I mean, selling one million copies is $60 million in revenue (Every game is $60, times a million units sold). They needed $120 million to break even? That doesn't sound right. Especially for a franchise sequel; it was the third game in the series. The FIRST one is the most expensive to do because that's the one where most of the engineering needs to be done. The rest are just building on that. That's really surprising to hear. UFC was supposed to be a big part of THQ's strategy going forrward; it was supposed to be a dependable money-maker for them. And, at least the first one, sold really well. This is mind-boggling. I just feel bad for Dana White. That guy HATES EA with a flaming passion; and he should be. When he took meetings back in the day to EA about making UFC games, they apparently laughed him out of the building. "It'll never be a REAL sport" they would say. He hates them so much that he went through all that trouble for the UFC to acquire Strikeforce, just to shut down EA's rival "EA Sports MMA" franchise (since they pulled most of their lineup from that promotion). Poor, poor guy. THQ should've let him in on these decisions; he probably would've told them to take it to anybody else. Activision? Ubi Soft? I bet Ubi Soft actually would make a killer UFC game.
  • Ahhhh the wonders of gaming industry, am I right

  • Really? Wow, didn't see that coming, ijs! Profitability=sales? Guess so!
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