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[VerTiGo]

uDraw should not have been released on PS360. Should have just let the Wii game run its course and just worked on a sequel for Wii U launch. Wasn't this obvious?

Analysts? Ha, when is an analyst ever right? You pay these fools to see if "x" product can sell in a market. Of course they are going to come up with hopeful data in some form.

 

[rabhw]

Wow, it just keeps dropping.

Bailout.gif

 

[JJConrad]

Primarily due to weaker-than-expected initial sales of its uDraw GameTablet(R) for Xbox 360(R) and PlayStation(R) 3, the Company now expects to report net sales for the third quarter of approximately 25 percent below its previously announced guidance of $510 million to $550 million.

This is straight from THQ. Am I reading this right? How many mistakes are in that sentence?

510 to 550 is about an 8% increase. 550 to 510 is about 7% below. 25% below 550 would be rounded to 410.


And how the hell did they put that much faith in UDraw PS360?

 

[Averon]

They won't make it until Darksiders II's release, will they

 

[bigtroyjon]

This is straight from THQ. Am I reading this right? How many mistakes are in that sentence?

510 to 550 is about an 8% increase. 550 to 510 is about 7% below. 25% below 550 would be rounded to 410.


And how the hell did they put that much faith in UDraw PS360?

You aren't reading it right. They don't project an exact number, they give a range.

 

[ClosingADoor]

This is straight from THQ. Am I reading this right? How many mistakes are in that sentence?

510 to 550 is about an 8% increase. 550 to 510 is about 7% below. 25% below 550 would be rounded to 410.


And how the hell did they put that much faith in UDraw PS360?

How much does a publisher get from a game? uDraw costs 75$ here. Let's say they get $40 (but that might be lower). They would need to sell over 3 million units of the damn thing to reach that 127 million they are now expecting to earn less.

Someone over there really thought uDraw could sell 3 million on PS3 and 360 :S

 

[walking fiend]

They were occasionally smart with their output, they just couldn't stop themselves from chasing that Call of Duty dragon.

They just put too many efforts without focusing on any of them.

I mean, they asked (allowed?) relic to make a 3rd person action-adventure? Now it is like Sega asking Creative Assembly to make the sequel to Bayonetta... It is worse actually, because they did already made one before and failed, why try it now that you aren't in a good financial condition? Why not spend the money on another Dawn of War sequel, probably they could make more than one with the budget...


---
I now see what they were so happy about Wii U version of darksiders II, probably Nintendo can publish the game as an exclusive... lol

 

[ClosingADoor]

They just put too many efforts without focusing on any of them.

I mean, they asked (allowed?) relic to make a 3rd person action-adventure? Now it is like Sega asking Creative Assembly to make the sequel to Bayonetta... It is worse actually, because they did already made one before and failed, why try it now that you aren't in a good financial condition? Why not spend the money on another Dawn of War sequel, probably they could make more than one with the budget...

SEGA did actually do that in a way. Creative Assembly made Spartan and Viking, both third person action adventure games. Don't know how they sold, but Viking was a fun game.

 

[VerTiGo]

How much does a publisher get from a game? uDraw costs 75$ here. Let's say they get $40 (but that might be lower). They would need to sell over 3 million units of the damn thing to reach that 127 million they are now expecting to earn less.

Someone over there really thought uDraw could sell 3 million on PS3 and 360 :S

You aren't just looking at the manufacturing of the hardware, regardless that requires paying a manufacturer for material and labor. Then the resources internally for labor and software development, bug testing, print, packaging and advertisement.

I don't understand why they would even bother bringing the uDraw tablet to the PS360. The total cost of bringing it to market is ridiculously high. So risky too...

They should abandon the brand. They should develop uDraw software for the Wii U. Then you won't have to bleed costs on hardware, and Nintendo's will be more capable anyway. Only problem here is that I think Nintendo got pissed and will have such software built into the Wii U already.

THQ will recover. Their future line-up is still solid. Are they publishing South Park? That will be the first THQ game I buy day one in years. Yeah, Darksiders has some hype too (I hated it personally) but I will keep an eye on its sequel because it's a Wii U title.

 

[Freeza Under The Shower]

I don't really see any similarities between uDraw and Call of Duty.

He means Homefront, silly.

 

[ProfessorMoran]

Really all I care about from this article. I just pray THQ doesn't take Volition down with them if they collapse.

Red Faction Armegeddon didn't exactly light the sales charts on fire.

The problem is if THQ goes down Volition will get sold off, most likely to one of the big boys and be treated like a red-headed stepchild.

 

[inky]

Wow, it just keeps dropping.

Bailout.gif

It is. Watching it drop on real-time is super sad.

 

[VerTiGo]

It is. Watching it drop on real-time is super sad.

Fuck, I may buy.

 

[Kambing]

Fuck, I may buy.

Me too... -_-

 

[JJConrad]

You aren't reading it right. They don't project an exact number, they give a range.

Okay, now that makes sense.

But now I don't get the stock reaction. That range is still about $75 million over last two year's Q3 net sales.

 

[ClosingADoor]

Red Faction Armegeddon didn't exactly light the sales charts on fire.

The problem is if THQ goes down Volition will get sold off, most likely to one of the big boys and be treated like a red-headed stepchild.

Yeah, Armageddon killed the Red Faction series for the foreseeable future.

But I think some publishers would be very interested in Vilition of they get the Saints Row IP with it (don't know how that works). It's the only 'answer' to GTA at the moment and a company like EA wouldn't mind having that I think.

 

[walking fiend]

SEGA did actually do that in a way. Creative Assembly made Spartan and Viking, both third person action adventure games. Don't know how they sold, but Viking was a fun game.

lol, didn't know Spartan was made by them.

As I said, it is worse than even that; 1. Sega wasn't in a financially critical situation as is THQ 2. Spartan as first attempt by creative ensembly was at least critically rather well received as far as I remember (unlike that relic game which I can't even remember the name)

 

[Freeza Under The Shower]

They won't make it until Darksiders II's release, will they

Depends how the division between their own capital and investor capital is exactly. It's never been a particularly wise move to bank everything on investors, but a lot of companies still do.

I'm guessing some of the people who are now selling THQ shares are probably the same people who sold their Nintendo shares earlier this year. (and then some more as the stock begins to fall and others start cutting their losses, meaning they sell as well). It would make sense for large investors to have spread their investments on a wide selection of 'motion control growth' or whatever the particular factor is on which they went ahead with the portfolio.

That said, THQ has been struggling for a while now, was one of the first companies to use the online pass thing to generate additional revenue, and had its major projects backfire. Homefront's failure in particular has probably shattered investor confidence in THQ. This uDraw thing must just be the straw some of them have been looking for for some time now.

 

[Jin34]

They need to find more teams like the ones who made Metro.

You mean teams in Eastern Europe where salaries are far lower than in most game development countries?

 

[bigtroyjon]

Okay, now that makes sense.

But now I don't get the stock reaction. That range is still about $75 million over last two year's Q3 net sales.

Costs aren't going to drop nearly as much as the revenue since they likely produced enough stock to supply their projections. Profit will end up taking a hit and they weren't really having huge profit margins in the first place.

 

[Gomu Gomu]

Homefront's failure in particular has probably shattered investor confidence in THQ. This uDraw thing must just be the straw some of them have been looking for for some time now.

Wait Homefront flopped? I thought it did well. Not THAT well, obviously. But still, damn.

 

[ymmv]

They won't make it until Darksiders II's release, will they

If THQ goes under, I hope this game will be picked up by someone else. It's the only THQ game in the whole portfolio I'm interested in.

 

[Mindlog]

Defeated by bad aps!

 

[Deadly Cyclone]

Wait Homefront flopped? I thought it did well. Not THAT well, obviously. But still, damn.

Not sure it flopped, it sold over 2 million copies and has a sequel coming. Critical reception was a bit mild though and launch was rocky.

 

[Totobeni]

Yeah, Armageddon killed the Red Faction series for the foreseeable future.

But I think some publishers would be very interested in Vilition of they get the Saints Row IP with it (don't know how that works). It's the only 'answer' to GTA at the moment and a company like EA wouldn't mind having that I think.

It's sad because RF:G sold very well, but THQ wanted the sequel to be a boring corridor shooter for some reasons.

 

[Averon]

If THQ goes under, I hope this game will be picked up by someone else. It's the only THQ game in the whole portfolio I'm interested in.

DSII looks like an excellent mid-tier game for Activision or Namco Bandai to pick up. If THQ does go under, I hope that's the case.

Not sure it flopped, it sold over 2 million copies and has a sequel coming. Critical reception was a bit mild though and launch was rocky.

HomeFront's ad budget was insane, though. It was 30-50 million last I heard.

 

[ClosingADoor]

You mean teams in Eastern Europe where salaries are far lower than in most game development countries?

Actually, yes. If you can't compete with the likes of EA and Activision on blockbuster titles, you must approach that market differently. Might not sell as much per title, but the costs are way down.

Not sure it flopped, it sold over 2 million copies and has a sequel coming. Critical reception was a bit mild though and launch was rocky.

It sold well, but cost to much and spent to much on marketing. But that can be expected from a first in a new IP. They did establish the name now and can built on that. Really depends on the sequel if their investement turns out to be a good one or not.

 

[Hari Seldon]

Wish they would bring back CoH. I'd definitely rather play CoH than SC2. I could give two shits about anything to do with Warhammer. I will likely pick up Saints 3 during a steam sale, I'm too burned out of open world games to want to pay full price for it. But overall, I like THQ and don't want them to go under at all.

 

[JaseC]

Valve should buy THQ for their retail distribution channels, thus becoming entirely self-sufficient. Just try and stop Half-Life 3 unlocking early, EA!

 

[Jin34]

Actually, yes. If you can't compete with the likes of EA and Activision on blockbuster titles, you must approach that market differently. Might not sell as much per title, but the costs are way down.

It was a rhetorical question to state how that's not really a viable option.

 

[Rated-Rsuperstar]

If it has to come down to THQ closing up just so someone new works on a WWE game then so be it. 10 years of Yuke's rehashing the same stuff has left me bitter.

 

[ClosingADoor]

It was a rhetorical question to state how that's not really a viable option.

Why? If a game like Metro sells less, but makes them money anyway, what's bad about that?

Sure, it will not magicly make their stock rise sky high or something, but what's wrong in investing in those kind of games of they are profitable.

 

[george_us]

It's sad because RF:G sold very well, but THQ wanted the sequel to be a boring corridor shooter for some reasons.

Well Guerilla didn't exactly light the charts on fire when it first came out although word of mouth helped it become a million seller. Plus I assume the developers felt it didn't make any sense to have two open world franchises.

 

[Jin34]

Why? If a game like Metro sells less, but makes them money anyway, what's bad about that?

Sure, it will not magicly make their stock rise sky high or something, but what's wrong in investing in those kind of games of they are profitable.

It's not the kind of games, its the people that make the games and where they are located in. So unless there are enough people of the same talent level as CDProjekt or the ones who made Metro (some of which came from CDProjekt) to increase Eastern Europe's output by like a factor of 20, then it's not a viable option.

 

[Card Boy]

And it's getting worse!

Don't you get delisted after a certain amount of time under $1?

One more for good luck.

 

[Nirolak]

One more for good luck.

Fantastic job THQ.

 

[subversus]

Devil's Third
Metro 2034

these games must survive.

Well, Metro is almost finished I think.

 

[markot]

Fantastic job THQ.

Will you dance on my grave so quickly?!

 

[Nirolak]

Will you dance on my grave so quickly?!

Only if you talk down on others, glorify zombie employee level crunch, lay off said zombies after shipping 3 million copies, and then run your company into the ground.

 

[east of eastside]

THE ANALYSIS: In a client note Thursday, Brean, Murray Carret & Co. analyst Todd Mitchell downgraded the stock to "Hold" from "Buy" and removed his $4.50 price target due to the reduced outlook.

Mitchell said the change is likely to mean the company has less cash on hand, which could make it harder for THQ to fund upcoming game releases. He said he is "hard pressed to think of a company that has mis-executed as often and to the same magnitude as THQ."

"We can fathom a scenario where by THQ emerges from this situation as a viable entity. However, given THQ's checkered history on this front, we would be foolish not to probability weight alternative scenarios, including the company's bankruptcy," he said.

I can only hope.

 

[subversus]

I can only hope.

is there any reason why (outside your stupidity)?

 

[east of eastside]

is there any reason why (outside your stupidity)?

And your stupidity? are you an employee? stockholder?

holier than thou?

 

[subversus]

And your stupidity? are you an employee? stockholder?

holier than thou?

lol, it seems there is no other reason for you.

 

[markot]

I wouldn't employ zombies to begin with! Thats just asking for trouble.

 

[Totobeni]

One more for good luck.

so sad ;_;

their new logo was a curse and a bad luck I guess.



by the way..do we know how Ubi's clone tablet ( Drawsome? ) is doing sales wise?

 

[Gravijah]

Only if you talk down on others, glorify zombie employee level crunch, lay off said zombies after shipping 3 million copies, and then run your company into the ground.

hey it worked for activision!

 

[canvee]

I hope they don't go bankrupt/get bought out by EA etc. Less publishers is bad for the industry. They unfortunately placed too much effort on trying to capture the same audience as EA and Activition. They were perfectly fine before with their mid-ranged properties and licensed games.

 

[subversus]

I hope they don't go bankrupt/get bought out by EA etc. Less publishers is bad for the industry. They unfortunately placed too much effort on trying to capture the same audience as EA and Activition. They were perfectly fine before with their mid-ranged properties and licensed games.

yep, I don't know why they went for this audience, it's really limited. I'm not complaining though.

 

[bigtroyjon]

I hope they don't go bankrupt/get bought out by EA etc. Less publishers is bad for the industry. They unfortunately placed too much effort on trying to capture the same audience as EA and Activition. They were perfectly fine before with their mid-ranged properties and licensed games.

Publishers who haven't got a clue and are wasting resources is what's bad for the industry.

 

[Druz]

If THQ goes down and takes Relic and Volition with them.... there will be many manly tears shed. I could see something bad happening to Relic, as their attempts to go multiplatform haven't gone well.

Wait, is Relic's next title Dawn of War III? I want a new Homeworld or COH game, damnit!

The talent pool responsible for Homeworld and COH are long gone. Like 2008 gone. All we get are shitty Dawn of War games,