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THQ lowers Q3 expectations by 25% on weak uDraw 360/PS3 sales, [Stock Still Tanking]

B

Bebpo

Banned
I'd rather no one buy them who is anti-PC like MS/Sony/Nintendo.

Outside the crappy outsourced SR2, THQ's PC versions are amazing and by far the best and most enjoyable way to play their games. They also have great sales and the THQ complete pack on steam every year is an incredible value.

Don't want to see them go console-exclusive or console-first, PC version years later.
 
T

TheSeks

Blinded by the luminous glory that is David Bowie's physical manifestation.
Hey, THQ: Want to save your stock? Hold Volition at gunpoint and demand they work on Descent 4, 5 and 6. You'd get 100 copies from me alone.

Still bitter they're working on Red Faction/Saints Row instead of this.
 
M

MrNyarlathotep

Banned
DangerousDave said:
A good part of THQ benefits are right now from the 360 users (they have more 360 overPS3 ratio than much other companies).
Click to expand...

On what facts are you basing the claim that THQ are making most of their money from the 360?

Because as far as I can see, they have done nothing but lost money big time on the HD twins (U-draw as explicitly stated in the OP, but also Homefront, Metro, Space Marine, and Darksiders all obviously sold below expectations), and their bread and butter income has been (for many years now) the PC market and licenced games aimed at younger audiences on the Wii and DS.
 
B

bigtroyjon

Member
MrNyarlathotep said:
On what facts are you basing the claim that THQ are making most of their money from the 360?

Because as far as I can see, they have done nothing but lost money big time on the HD twins (U-draw as explicitly stated in the OP, but also Homefront, Metro, Space Marine, and Darksiders all obviously sold below expectations), and their bread and butter income has been (for many years now) the PC market and licenced games aimed at younger audiences on the Wii and DS.
Click to expand...
I think he was talking about Saints Row specifically, but even the whole company gets it's biggest share from the 360.
THQ quarterly report
 
D

djtiesto

is beloved, despite what anyone might say
AngelSoldier said:
Ew. THQ hasn't produced or published anything that I liked. Can't even remember a THQ game as I'm typing this.

Wouldn't care if they went under.
Click to expand...

Ditto, tbh I'm surprised they lasted past the 16 bit era. I don't think I've ever bought a game from the company, ever... excepting the N64 AKI wrestling games.
 
Y

ymmv

Banned
bigtroyjon said:
I think he was talking about Saints Row specifically, but even the whole company gets it's biggest share from the 360.
THQ quarterly report
Click to expand...

THQ makes more money from 360 games than the PS3, but there's no chance in hell that they will drop the PS3 since it's number two in earnings. If anything they'll drop the PC version of multiplatform games since the PC version has the smallest market share, but even that won't happen.

Publishers *need* the money from the PS3. Multiplatform games are only profitable when the development costs of a single game is spread out across as many platforms as possible in order to reach the largest possible audience. PS3 software sales aren't that far behind the 360 in worldwide software sales. In most European countries (except the UK and Ireland) PS3 versions of multiplatform games will outsell the 360 version. Euro centric games like FIFA Soccer and most Japanese games will make most of its money on the PS3. Software publishers will therefore never ever drop the PS3 version, because they need those PS3 software sales to stay in the black.
 
B

bigtroyjon

Member
ymmv said:
THQ makes more money from 360 games than the PS3, but there's no chance in hell that they will drop the PS3 since it's number two in earnings. If anything they'll drop the PC version of multiplatform games since the PC version has the smallest market share, but even that won't happen.

Publishers *need* the money from the PS3. Multiplatform games are only profitable when the development costs of a single game is spread out across as many platforms as possible in order to reach the largest possible audience. PS3 software sales aren't that far behind the 360 in worldwide software sales. In most European countries (except the UK and Ireland) PS3 versions of multiplatform games will outsell the 360 version. Euro centric games like FIFA Soccer and most Japanese games will make most of its money on the PS3. Software publishers will therefore never ever drop the PS3 version, because they need those PS3 software sales to stay in the black.
Click to expand...

If you could have bothered to look at the rest of the conversation you would have seen that we were discussing Microsoft buying THQ and if it would be worth it for them.
 
S

sleepykyo

Member
Nirolak said:
Someone who doesn't have a lot of brands, and is thus willing to take a bunch of lower tier ones.

Perhaps someone like Warner or a Japanese firm who really wants to get into Western markets.

Any of the really big companies don't actually need them since most of them are trying to reduce the number of franchises they push.
Click to expand...
So Konami or Namco then ?
 
S

Samurai Penguin

Member
Oh THQ, what is happening to you??

You have had some amazing teams under you (either owned or at least published) and have some really good IP's:

GSC: STALKER (I am aware GSC and STALKER 2 are no more. I am just pointing out that THQ published the game)
Volition: Saints Row, Red Faction, Descent, inSANE
Vigil: Darksiders 1 & 2
4A: Metro 2033, Metro Last Light
Kaos: Homefront
Ctytek: Homefront 2
Relic: Dawn of War series, Company of Heroes
Obsidian: South Park

With games like that under your belt, one would think it would be impossible to go broke, but here were are. THQ, stop focusing on shit, get your head back on straight and start focusing on what makes a good publisher a good publisher again!!

It's a shame Red Faction will most likely be no more. Not sure why they (THQ or Volition) decided to work on 2 big IP's at once. They should have put all their time and resources into working on one game at a time and ensure the game is going to be as good as, or even better then the previous game. Not sure what happened to Red Faction. Whilst I liked Armageddon, it was a MASSIVE step back from the previous games.

Whilst I feel sorry for THQ and fear the future of games like Darksiders, Saints Row and THQ owned developers and IP's (4A and Metro series would no likely be easily picked up by someone else) and would hate to see them (be it the developers or even THQ itself) shut down, I am not a fan of their current penny pinching in the form of shitty DLC for Saints Row 3 that is already on the disc that feels like it was deliberately locked out of the game just so they could make some extra money.
 
N

Nirolak

Mrgrgr
I was slightly too late to capture it in a picture, but THQ went down 5.5% today and is now worth $0.75 a share.

They were $6.53 within the last 52 weeks, so this is quite the drop.

thqih6f2.png
 
N

Nirolak

Mrgrgr
subversus said:
what price do they need to be delisted?
Click to expand...

Someone corrected me earlier on this accord:

Rocksteady33 said:
Public shares have to be worth something like over $1 million to stay on. Yahoo Finance shows they have 68 million shares, 99% of which are public. Meaning it's still worth about $68 million. So no, they should be fine unless they have to buy shares back from the public.
Click to expand...

Rocksteady33 said:
But that's just from a market cap perspective. You are right that the NYSE and NASDAQ typically like to see stocks trade at >$1, but if there market cap is still substantial it can give the company leeway from being delisted. I'm sure there's a lot of technicalities and specific situations about it, but I would think a market cap of $65+ million would mean they should be alright for at least awhile. If their stock takes a huge noise dive though and shows little recovery that might be another story.

For example a stock price of .25 cents would have their market cap take a huge hit to $16 million, which could raise red flags to the stock exchange to delist them.
Click to expand...

They're currently at $51 million/$0.75 per share and falling.

They were going down in after hours as well, so I wouldn't be surprised if they're down more tomorrow.
 
P

ProfessorMoran

Member
What other relatively big game will they have outside of Dawn of War 3? I don't see Darksiders 2 being a commercial hit, maybe the WWE game will get some sales but then they have to pay to license that shit. I'm worried for Relic and Volition.
 
E

Evoga

Member
With the coming depression it will be surprising to see who goes under. Netflix is another close to going under.
 
B

bigtroyjon

Member
Evoga said:
With the coming depression it will be surprising to see who goes under. Netflix is another close to going under.
Click to expand...

Netflix makes a profit every quarter, they aren't anywhere close to going under. Their stock price took a massive dive but the business itself is in no danger.
 
E

Evoga

Member
bigtroyjon said:
Netflix makes a profit every quarter, they aren't anywhere close to going under. Their stock price took a massive dive but the business itself is in no danger.
Click to expand...

Isn't the SEC investigating the for dodgy accounting? I remember the CEO giving reasons to buy the stock while management were quietly offloading.

I still wouldn't touch them anyway as they are a middle man with no product.
 
B

Busty

Banned
Time Warner just looooves a corporate bargain (Midway, their low bids for MGM and Endemol) and I can just see them sitting on the side lines waiting to swoop in and snap up THQ and it's assets for a bargain basement price and absorb it into WB Games.

I actually think that, in terms of IPs, Saints Row would be right up WB Games alley.
 
M

Mindlog

Member
Someone placed a bet right before the announcement of the verdict. Neat.

Stock has rallied 16.25% on the day as of now.
0.889 +0.124 (16.25%)

/crazycharts
 
L

lunchwithyuzo

Banned
djtiesto said:
Ditto, tbh I'm surprised they lasted past the 16 bit era. I don't think I've ever bought a game from the company, ever... excepting the N64 AKI wrestling games.
Click to expand...

I bought Devil Dice, Granstream Saga, Ghost in the Shell, Phantasy Star Collection and Sonic Advance 1-3 from THQ back in the day. Nothing this gen though.
 
C

Caspel

Business & Marketing Manager @ GungHo
My last day at THQ will be this Friday. Loved every minute I spent here. I can't wait to see UFC 3 and Darksiders 2 when they are on store shelves.
 
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