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THQ on why kid's games make financial sense

On the back of THQ's recent financial results, CEO Brian Farrell has stated that the cost of modern video games development means that a triple-A game selling 800,000 units may still make a loss.

"On the core titles, 700,000, 800,000 units – these days unfortunately we think are over," Farrell said in an investor call transcribed by Seeking Alpha.

"But within the kids segment, the break evens are very low – depending on the title, how many SKUs you do, per SKU your break-evens are, depending on the platform, somewhere between even 100,000 and 400,000 units."

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