Topic: THQ on the verge of death.

I think they will be bought out by another company when there stock price is low(er).

THQ has some valuable IPs. I wouldn't put it past another publisher to do a takeover right now (hostile, if necessary). That said, THQ has a very poor tablet/ mobile/ social gaming presence, which doesn't make it attractive as an acquisition for the likes of EA or Square Enix, and the other publishers aren't bothering with big acquisitions right now.

When did it change from the traditional mud wrestling contest between CEOs? Honestly, I barely recognise the industry these days.

Yeah, it's changed a lot. I like to think of it as the same transition that happened to the film industry a few years ago, when it went from gung-ho innovative place to do business to a corporate world.

It's good in some ways (games have far bigger budgets now), but quite bad in others (lots of people losing their jobs right now).

Yes, because when a company lays off an admittedly large number of redundancies, and hits a temporarily rough patch in sales, it's just begging to be pulled through death's door. Bloody hell. /sarcasm.

For what it's worth, if you read around, the publications that actually understand how business works aren't claiming it's the end of THQ right now. The redundancies is the worst one - so many "journalists" out there saying it's proof THQ's going out the door. So few seem to understand that when a company refocuses, a lot of jobs are made redundant by default.

Sigh. I reckon THQ's going to make it through it ok. A narrower focus will do those guys good - worked for 2K Games.

How are games having bigger budgets a good thing? Many of the companies that focus solely on those types of games are seeing falling profits, because they aren't able to sell enough copies of the game to recoup development costs. That is part of the reason why so many developers are shutting down. Please explain how these ballooning budgets are good for the industry when so many companies are forcing layoffs and shutting down.

Maybe the indie scene is the future after all. Maybe the industry would be better off if they scaled things back a bit, instead of having this ideology of "bigger, more graphics, more spending, the bigger the better".

How are games having bigger budgets a good thing? Many of the companies that focus solely on those types of games are seeing falling profits, because they aren't able to sell enough copies of the game to recoup development costs. That is part of the reason why so many developers are shutting down. Please explain how these ballooning budgets are good for the industry when so many companies are forcing layoffs and shutting down.

Activision and EA beg to differ.

Blockbuster games are good for the industry because they allow the industry to cement itself as a dominant entertainment form. It legitimises the art form and helps grow it - there is more money in gaming now than there ever has been, and while the indies are benefiting, it's the blockbusters that have created that money.

It's also a good thing because blockbuster games are fun to play. Skyrim says hi.

Maybe the indie scene is the future after all. Maybe the industry would be better off if they scaled things back a bit, instead of having this ideology of "bigger, more graphics, more spending, the bigger the better".

No, it's not that simple. The industry is clearly heading to a dual model - the small fraction of big budget blockbuster games, and then the indie projects. That mid range of game, the small teams working on small scale retail games? That's the group that's going away.

So the small indie developers will thrive on mobile devices and digital platforms (App Store, Xbox Live Arcade, Steam, etc.), and the rest of the industry will solely focus on big-budget AAA games? Why would the "small teams working on small scale retail games" go away? Can't they just go where the indie developers are?

Activision and EA aren't the entire industry. There are hundreds of developers and publishers that have closed down over the years because they couldn't keep up with the rest of the industry, and/or they weren't able to recoup their development expenses.

So the small indie developers will thrive on mobile devices and digital platforms (App Store, Xbox Live Arcade, Steam, etc.), and the rest of the industry will solely focus on big-budget AAA games?

No.

Can't they just go where the indie developers are?

No.

Activision and EA aren't the entire industry

You're right about that.

There are hundreds of developers and publishers that have closed down over the years because they couldn't keep up with the rest of the industry, and/or they weren't able to recoup their development expenses.

OK.

What do you mean no? I just reiterated what you said.

Actually, you completely misinterpreted what I said.

Need a better explanation than that.

Explaining things to you never works.

http://www.gamesindustry.biz/articles/2012-01-31-thq-threaten...

So that has been threatened with having their stock delisted.

That's fairly routine for a company that has had its stock dip that much.

The question is whether THQ can get it back up again in time. If not (and I believe it can), then that's when this story becomes one of "uh oh"

THQ is in trouble, yet you keep downplaying it like it's no big deal. You seem to think they'll get out of this one just fine. Midway was in the same situation, and look what happened to them.

Give him a break. Chocobo has a really hard time being right all the time.

he has a point though. the real problems wont come until they are delisted and investors stop coming in. the problem now is finding some spare cash and hoping this next ufc game and darksiders will be hits. currently there is a rumor of a big layoff happening sometime this week at thq to save money and stave off death while they contuine to look for a buyer.

I'm hoping they bounce back and kill upper management and recluse thier effort s. they want to focus on core games that's find. they should realize however not all core games need to be big AAA moneysinks.

I LOL'd

That's because this crap about being "on the verge of death" is just that, crap. Companies can and do turn themselves around from being in similar positions.

I do think they'll get through this fine. And if not, they'll find a buyer for their assets. Bankrupty? I don't think so. I might be wrong, it depends on whether the CEO's turn around strategy has the time to come into effect, and works, or is able to find a buyer.

Give him a break. Chocobo has a really hard time being right all the time.

How much do you want to bet that I'm write more often then Tendoboy when it comes to business analysis?

Because whatever you'd like to bet, I'll take it.

And if you don't want to put your money where your fingers are, then go take your snide comments elsewhere.

yeah there's alot of hyperbole on the death stuff. I love to say Rim is dying when that's farthest from the the truth. (though they are all but dead in the consumer space)

Look at the evidence:

• Massive layoffs across their studios
• Stock is in danger of being delisted, and is trading at dangerously low levels.
• Sales of their "core" games are nowhere near as high as they would like.

I don't need a marketing degree to see that a company is in trouble, so stop with your "holier than thou" stuff, please. It makes us all feel inferior. THQ is in trouble, and if they can't turn things around QUICKLY, then they will more than likely try to liquidate their assets and find a potential buyer. They are spending all this money on AAA titles and aren't seeing any profit.

Again, Midway was in a very similar situation. In their case, the only major game they had was Mortal Kombat, and that was getting stale until Warner Bros. purchased the brand and did a complete reboot of the franchise.

And name me a few companies that have successfully turned around during this drastic of a crisis. I'd like to see some examples, seriously.

Look at the evidence:

• Massive layoffs across their studios
• Stock is in danger of being delisted, and is trading at dangerously low levels.
• Sales of their "core" games are nowhere near as high as they would like.

Given that you'll see in previous posts that I've said the situation at THQ isn't brilliant, I don't know why you're imagining this rosy attitude you seem to think I've got.

What I've said is this: THQ can turn things around. The company has restructured, which means job losses are inevitable, and yes, even significant job losses are on par with the course. The stock delisting only becomes a problem if it is delisted.

to liquidate their assets and find a potential buyer.

Which wouldn't be the death of THQ. Q.E.D. Death in a business sense is bankruptcy. Which isn't going to happen here. THQ has valuable assets.

That's if THQ even needs to sell.

And name me a few companies that have successfully turned around during this drastic of a crisis. I'd like to see some examples, seriously.

http://www.mbaskool.com/business-articles/marketing/326-ibm-g...

IBM.

Or, here's an even better example

http://www.futureblind.com/2011/01/apple-inc-the-greatest-tur...

Apple.

I do hope you've heard of those two companies. They're fairly large.

@PolkadotChocobo

All THQ needs is a hit game that will turn them around, like how Apple turned things around with the iMac and iPod products.

Also, wouldn't Nintendo be another notable example of a great turnaround? They were in very hard times during the N64 and GameCube eras, then the Wii and DS brought the company massive profits and renewed consumer interest.

All THQ needs is a hit game that will turn them around, like how Apple turned things around with the iMac and iPod products.

Well, yes and no. Apple didn't magically become a massively valuable company because it had a good product. That was a part of it, but the company itself was reorganised and had visionary leadership brought back into it.

There's a lot that goes on behind the scenes at these companies. Most of the problems that companies experience happen back there.

Also, wouldn't Nintendo be another notable example of a great turnaround? They were in very hard times during the N64 and GameCube eras, then the Wii and DS brought the company massive profits and renewed consumer interest.

Nintendo was never threatened with bankruptcy, stock market delisting, or any of those other genuine challenges. They had a couple of lean years, yes. So does everyone.

The turnaround, such that it is, for Nintendo was also nowhere near as dramatic as IBM, Apple and (fingers crossed) THQ. Which is why I didn't bother mentioning it. It's not an example of a great turnaround at all. It's an example of the ebbs and flows a typical business goes through.

Will someone please just nuke (literally) either WaltzElf or Tendoboy, or potentially both? If their constant arguing continues, we may have to hand the directing reigns of WaltzElf vs. Tendoboy: The Movie to Michael Bay since no-one else will ever be interested in the project.