Report: THQ sold UFC license because latest game failed to break even, focusing on low cost AAA games

Wedbush analyst Michael Pachter is reporting that THQ management told him that the reason the publisher sold the license to Electronic Arts is that the latest title, UFC Undisputed 3, failed to break even, despite selling 2M units worldwide.

UFC Undisputed 3 was the third best-selling game in the US last February, and at the time, THQ claimed that it was selling better than expected. However, both 3 and the previous edition, UFC Undisputed 2010, failed to make a profit.

THQ will now be concentrating on breaking even on a title-by-title bases, starting with South Park: The Stick of Truth, which will be seeing a March 2013 release. The game reportedly has a low break-even point of 2M units.

The publisher is also looking to break into the free-to-play market as well, focusing on PC and the next-gen consoles.