More Reviews
REVIEWS Resident Evil: Revelations Review
While 3DS gamers have been enjoying the franchise's best game in years for some time now, does the experience translate for Resident Evil fans on console?

Donkey Kong Country Returns 3D Review
Gamers have gone bananas for Nintendo's 3DS, but can this port of Retro Studios' 2010 Wii game make the jump to your portable?
More Previews
PREVIEWS The Last of Us Preview
With Naughty Dog releasing a new IP in just a few short weeks, we got hands-on one more time. But don't worry: This is a spoiler-free preview.
The Mighty Quest for Epic Loot Preview
Watch Dogs (PS4) Preview
Release Dates
NEW RELEASES GRiD 2
Release date: 05/28/13

Fuse
Release date: 05/28/13

Remember Me
Release date: 06/04/13

The Last of Us
Release date: 06/14/13



LATEST FEATURES Being A Console Is Actually Xbox One's Worst Asset
Microsoft's newest console has lots of different features, but video games might hold the device back from the software giant's true intentions.

Everything I Learned About Call of Duty: Ghosts Last Week
I wasn't allowed to talk about the new Infinity Ward game last week when I met with Activision, and I don't have much to say now that Xbox One spilled the beans.
 
Coming Soon

More Cheats
LATEST CHEATS
Abyss: The Wraiths of Eden
Action
05/24/13
More Cheats
MOST POPULAR CHEATS
Temple Run
Action / Adventure
04/08/13

LEADERBOARD
Read More Member Blogs
FEATURED VOXPOP Bras
On the future of some gamers
By Bras
Posted on 05/22/13
Before Microsoft and Sony do something regarding their future in the video game business, I wanted to write, and I've wanted it for a long time now, but other things kept getting in my way, and fearing that tomorrow might be too late, today will have to do.   Months ago,...

Home News THQ's Future Looks Grim, Shares Drop By Nearly 50 Percent

GAMING NEWS

THQ's Future Looks Grim, Shares Drop By Nearly 50 Percent

Posted on Tuesday, November 6 @ 10:51:33 Eastern by Alex_Osborn

THQ has been struggling as a publisher for quite some time. Now, with the recent delays of South Park: Stick of Truth, Metro: Last Light and Company of Heroes 2, and losses totaling in at $21 million, the company's situation appears to only be getting worse.

According to a report from Reuters, THQ's stock has dropped a whopping 46% in a single day, which is clearly a very, very bad thing. Part of the drop in shares is being attributed the rather underwhelming sales of Vigil Games' Darksiders II. Currently, only 1.4 million units have been sold, and a total of 2 million in sales is required for THQ to break even on the game.

According to Wedbush Securities' Michael Pachter (via GamesIndustry), THQ will likely either face bankruptcy or sale.

Should its financial position continue to deteriorate, we expect THQ to raise financing through an equity sale that could lead to dilution of existing shareholders.

We expect creditors to be asked to renegotiate terms at a discount; if they are unwilling, bankruptcy is possible. Although THQ has been able to lower its cost structure through layoffs and a streamlined release slate in order to temporarily improve profitability, it is unlikely to return to profitability unless its revenues once again begin to grow.

Do you think THQ will be able to beat the odds and somehow dig themselves out of this terrible hole they currently find themselves in? Let us know what you think in the comments below.

[Via]
Related Games:   Darksiders II
Tags:   THQ


More from the Game Revolution Network




Comments
  • graniteoctopus
    graniteoctopus
    Joined: Jan 2012
    Posted: Nov 6th, 2012 at 10:59 am
    So long and thanks for all the fish.
    0 5
  • xavier_2000_ie
    xavier_2000_ie
    Joined: Jun 2007
    Posted: Nov 6th, 2012 at 11:06 am
    inc steam sale?
    want to buy Darksiders 2
    :)
    0 1
  • strangebiscuit
    strangebiscuit
    Joined: Apr 2008
    Posted: Nov 6th, 2012 at 11:57 am
    I thought it was a pretty great game. How come no one buyed it?
    0 1
  • Jobin_Wendy
    Jobin_Wendy
    Joined: Mar 2012
    Posted: Nov 6th, 2012 at 4:42 pm
    Because the first Darksiders didn't set itself apart from other God of War clones. Great reviews only go so far... hype from the gaming community is essential. Also, I think 1.4 million units is a pretty solid figure, but for a AAA title like Vigil intended Darksiders II to be was a huge financial risk for a publisher that has had a shaky reputation (at best) for producing big-budget titles. Pair that with THQ's negative media attention for being on their way toward bankruptcy, and you have a pretty shitty situation for the developers. But that's life. You live and you learn, and then you get absorbed by EA.
    0 0
  • elmoreoocyte
    elmoreoocyte
    Joined: Apr 2012
    Posted: Nov 6th, 2012 at 1:10 pm
    "Do you think THQ will be able to beat the odds and somehow dig themselves out of this terrible hole they currently find themselves in?"

    More importantly, do I care? Answer to both is "No."
    1 1
  • friggest
    friggest
    Joined: Mar 2008
    Posted: Nov 6th, 2012 at 1:22 pm
    You sir, have not played CoHs. I suggest you do then rethink your position. I was fairly close to buying a hardcore PC for CoH2. If THQ goes under, the best strategy game in a while is on shaky grounds. I can't except that.
    0 1
  • Kanklez
    Kanklez
    Joined: Jun 2011
    Posted: Nov 7th, 2012 at 11:47 am
    Amen to that, I pray that they at least make it long enough to get CoH2 out the door as well as a patch or twelve, cuz Company of Heroes remains the best strategy game I've ever played.
    0 0
  • Andy578
    Andy578
    Joined: May 2011
    Posted: Nov 6th, 2012 at 1:53 pm
    they must recover, i want Homeworld 3 dam it
    0 1
  • TurinAlexander
    TurinAlexander
    Joined: Sep 2006
    Posted: Nov 6th, 2012 at 3:21 pm
    More people should be buying Darksiders II. It's a fantastic game, and much much better than the original. I think part of the problem with the sales is the advertising. I saw a couple of ads on TV before the game was released that told me nothing about the game at all. If it hadn't been for the GR review, I probably wouldn't have bought it, as I didn't particularly care for the first game. If THQ survives, they need to make some definite changes in their marketing department.
    0 0
  • cheesegod99
    cheesegod99
    Joined: Jun 2007
    Posted: Nov 6th, 2012 at 3:28 pm
    As long as South Park comes out, I could care less about the financial solvency of the company. THQ made some great games, including the original Red Faction which will always hold a special place in my heart. However, companies come and go. And it looks like THQ is doing the later...
    0 0
  • drathbone
    drathbone
    Joined: May 2011
    Posted: Nov 6th, 2012 at 9:50 pm
    Time to invest!
    0 0
  • Andy578
    Andy578
    Joined: May 2011
    Posted: Nov 7th, 2012 at 1:06 pm
    ya i was kinda thinking about that myself, with shares as low as they are it would be worth taking a gamble, either they fail or they recover and you make a huge profit
    0 0
  • drathbone
    drathbone
    Joined: May 2011
    Posted: Nov 7th, 2012 at 3:16 pm
    Or, depending on how the deal goes down, they get bought out by a bigger company and you get stocks in that bigger company.
    0 0
  • Andy578
    Andy578
    Joined: May 2011
    Posted: Nov 9th, 2012 at 5:24 pm
    ya i've had that happen with some Oil shares but seems to hurt me more then anything, going from 6000 shares to 70 kinda hurts, same total value but with the higher price per share it takes bigger jumps to turn a profit and sadly big companys just dont move a whole lot
    0 0
  • Bretimus_v2
    Bretimus_v2
    Joined: Jan 2009
    Posted: Nov 7th, 2012 at 12:25 am
    Over the last couple of months I've toyed with the idea of selling the stock short to capitalize on the downtrend. My one concern would be having my money tied up for months on end should the company declare bankruptcy or have the stock delisted. Still, the chances of it going up are pretty weak. That reverse split killed a ton of investor confidence.
    0 1

Post a Comment
LOGIN or REGISTER to post a comment or rate this article.
More On GameRevolution
STAFF | CONTACT GR | ADVERTISING | GRADING SYSTEM | PRIVACY POLICY | TERMS OF USE | AdChoices
GameRevolution.com is a property of CraveOnline Media, LLC, an Evolve Media, LLC company. ©2013 All Rights Reserved.
monitoring_string = "9825918b2b361fb0e003f4935ce18ae6"