EA, THQ realign divisions

Neither Electronic Arts nor THQ have particularly enjoyed the past year. EA has seen share prices plummet and several new game franchises either flounder or walk into a wall of controversy. THQ, meanwhile, was pretty much off the radar entirely until the recent release of “Red Faction: Guerrilla”.

Both companies took some dramatic steps today in an attempt to get back on track.

EA merged developers BioWare and Mythic into a single team, which will focus on role playing games and massively multiplayer online titles. Mythic is responsible for the company’s “Warhammer Online,” while BioWare has developed “Mass Effect” and the upcoming “Star Wars: The Old Republic”.

The move is a big show of confidence in BioWare’s leadership. Ray Muzyka, formerly joint CEO of the company, will oversee the merged division, while BioWare co-founder and joint CEO Greg Zeschuk will become Group Creative Officer. (Mythic founder Mark Jacobs has left the company.)

The move is a smart one for EA. BioWare is considered one of the top development studios in the business. Mythic had success with its pre-EA titles, but “Warhammer Online” has failed to live up to expectations. Together, the teams could help EA out of its slump.

Over at THQ, all of the development studios are being moved into one of three divisions – “Core,” “Online” or “Kids, Family and Casual Games”.

“The new structure specifically aligns our primary business units with our product strategy, enabling each team to focus on planning and execution in highly defined product areas with full profit and loss responsibility,” said Brian Farrell, president and CEO of THQ.

THQ has been a company adrift for some time. Historically, it has largely been viewed as the maker of children’s games based on film licenses (a multi-picture deal signed early on with Pixar has reaped millions of dollars) and WWE-licensed games.

Farrell, though, has been actively chasing the hard core gamer for years, believing they are the key to the company’s future. His efforts have made some progress at changing the company’s reputation. A string of forgettable recent titles has hurt THQ badly over the past year, though. (The company’s stock has gone from over $21 per share to just over $7 today.)

Part of the problem has been the split focus of the development teams. Today’s realignment may correct that and help THQ get back on track.

It has some momentum behind it. The recently released “Red Faction: Guerilla” has been met with strong reviews and several titles got a good buzz at E3.