Quadrangulum
Banned
The cost of operating THQ is staggering.
-
Hey, guest user. Hope you're enjoying NeoGAF! Have you considered registering for an account? Come join us and add your take to the daily discourse.
THQ Q3 Results: $56M Loss, SR3 = 3.8M, $47.7M Cash Left, [Stock Drops 30%]
- Thread starter Pooya
- Start date
- Status
bigtroyjon
Member
Right, I was just trying to be ridiculously favorable based on any statements from the call to show that even in this situation it's still nigh impossible for them to make money.
Normally conference calls are extremely upbeat no matter what and people act like they're doing a victory lap unless they are in horrible shape.
This was essentially what EA's call was like: http://www.youtube.com/watch?v=GGXzlRoNtHU
But yeah, this call was quite brutal.
SapientWolf
Trucker Sexologist
Seems like they'll have to lay off staff the day the games go gold unless they scrounge up some cash. Sad day for THQ.
bigtroyjon
Member
Also need to factor in catalog sales, SR3 will probably do another 1-2 million this year based on their projections. WWE games also will sell throughout the year.
UFC in a couple weeks is going to be something to keep an eye on. The UFC brand is bigger than ever with the Fox deal, so maybe all that extra exposure can give the game a huge boost. They've had ads on the mat for all the shows over the last couple of months.
Poor sales for that game would be the final nail in the coffin.
UFC in a couple weeks is going to be something to keep an eye on. The UFC brand is bigger than ever with the Fox deal, so maybe all that extra exposure can give the game a huge boost. They've had ads on the mat for all the shows over the last couple of months.
Poor sales for that game would be the final nail in the coffin.
yea of all of this the Metro delay bums the hell out of me =(
Is what type of license agreement they have with Zuffa available? I find it impossible to believe that they aren't getting a nice cut per unit as opposed to a flat payout from THQ.
I'd buy another EA game every year specifically if Riccitiello came out with that song playing in the background, dry ice fog covering the ground, and lasers flying everywhere. I'm not even sure if you guys are watching these though, you seem to be implying you can only listen.
Yeah, it sucks for all the employees that are going to be hurting because of this but the company was just so mismanaged. I don't see how they thought uDraw PS3/360 would do as well as the Wii version when it came out a year later and there are clear differences in demographics.
bigtroyjon
Member
I don't think that info is available but I think its a safe bet that UFC is getting a piece of the action in return for marketing.
Back-catalog games still generate some revenue, too. While most games tend to do their biggest numbers up front, They don't generally stop selling entirely unless they're pulled completely from shelves and DD services.
They stated that SR3 has sold 3.8M to date, and they're expecting it to end up between 5 and 6M. While those sales will be at a reduced cost, it's still 1.2 -2.2 million copies. if THQ averages a $15 cut on those, that's another $18-33M (with probably 60-75% of that this year). Other back catalog titles obviously won't hit those kinds of numbers individually, but as a collective group... well, I don't have enough info to even make a guess.
Ignis Fatuus
Banned
Sounds very unlikely at this point, actually. People are just hoping they get the games that have already been announced.
I'd be leery of expecting another 2M from SR3. It only added 200k in all of January, and that was with nothing else being released this month by anybody. Once the major titles start rolling in, SR3 will be forgotten. It may do okay for itself at a budget price, but it's not selling another 2M at full price.
UFC will definitely be interesting to watch.bigtroyjon said:
UFC 2009 was a monster, selling 1.54M in the first 2 months of NPD.
UFC 2010 fell off drastically, selling 697k (less than half of 2009) in the first 2 months of NPD.
They gave some extra time off to the series before UFC3. Maybe that time off will help reignite sales, or maybe not. I'm curious to see how it responds.
TheVoidDragon
Member
Why would they find a new publisher because of that? It's been delayed for a reason.
oh you seem to be in the know? for which reason exactly?
4A Games is the professional and cheap (thanks to its location) team. There are about 50 people. The cost of developing Metro 2033 was less than 4 million bucks. If THQ folds they will easily find another million from smaller publishers like Deep Silver, 1C, bitcomposer, CD Project, Kalypso or get private financial backing (which is entirely possible) and self-publish the game with the help of a gaming PR agency.
Wouldn't it make sense to get the 40k MMO out of the gate?
Seems like a game that could generate a steady stream of revenue, if handled properly.
I don't know much about MMOs or their development circle, so maybe I'm wrong here entirely, but if they managed to reduce the scale of the project and get it our earlier, it would make some cash.
Because the game was planned bigger and some things are already done, they could add expansions and content updates pretty early in its life-circle to keep the audience and get extra revenue.
Also: If they decide to only keep the studios, that are doing the already announced work, wouldn't that allow them to cut many extra costs - at the expense of nothing in the works for 2014 and ongoing?
I'd guess short term decisions are a tad more important now.
Seems like a game that could generate a steady stream of revenue, if handled properly.
I don't know much about MMOs or their development circle, so maybe I'm wrong here entirely, but if they managed to reduce the scale of the project and get it our earlier, it would make some cash.
Because the game was planned bigger and some things are already done, they could add expansions and content updates pretty early in its life-circle to keep the audience and get extra revenue.
Also: If they decide to only keep the studios, that are doing the already announced work, wouldn't that allow them to cut many extra costs - at the expense of nothing in the works for 2014 and ongoing?
I'd guess short term decisions are a tad more important now.
Vinterbird
Member
The 40K MMO probably wouldn't stand a chance as it is now with the market, and releasing whatever they have now with the promise of more in the future, if people pay for it, would make sure that the game would not survive after its initial month of release.
And killing anything not formally announced like the Patrice game would be crazy, since that stuff is what could save THQ right now, if they launch a good game at the beginning of the new console cycle, could put them in a Assassins Creed like spot for the future generation.
I still don't understand how it's been possible not to bring uDraw on PS360, but to rely so much on it, to spend so much money for it...an huge black hole that could kill them. It's absurd. Sometimes, it seems executives, marketing people, etc. etc. ...don't know a shit about the real world. As well as the analyst. Bah.
Yeah, sure it wouldn't make sense to launch the game in a broken state.
But if they managed to polish it with fewer races and planets and release them steadily over the months after launch... But I guess thats not how game development works.
Sure, I agree. Its just that they are struggling to stay alive until the new generation hits. Short term, the team won't make any money, but the team will still need paychecks.
It's not that I would like the canceling of the games btw, I'm just thinking how it could be possible for them to stay afloat long enough to stabilize.
uDraw is on 360 and ps3 already
DXB-KNIGHT
Member
Is the Wii's Udraw device cheaper to manufacture than the HD ones since it requires a Remote or its makes no difference?
Steverulez
Member
Are THQ still publishing the Brave game and a final Nickleodeon game, Nicktoons Party or something?
Brave could certainly help them.
Brave could certainly help them.
exmachina64
Banned
I agree wholeheartedly. Since most of the people on the business side don't seem to play games, I imagine there's not much understanding of the market.
HYDE
Banned
What's with THQ's infatuation with V titled companies?
Volition, Vigil, Valhalla
They should change their name during this reboot process to Triple V or something cooler than that(because I can't think of anything cooler).
On another note can't wait for Darksiders 2 and Devil's Third.
Volition, Vigil, Valhalla
They should change their name during this reboot process to Triple V or something cooler than that(because I can't think of anything cooler).
On another note can't wait for Darksiders 2 and Devil's Third.
Edit Nevermind. It's 4QFY13, which is a year from now.
This really sucks, we need THQ to stay around. Before too long all we are going to have left is EA and Activision and that would not be good.
REALLY sucks Metro was delayed, I was looking forward to it because the first was amazing, even on the 360.
SR3 was amazing, but even it's sales numbers were a little low but hopefully enough to keep them around and making more SR games(Sounds like it according to this call at least).
REALLY sucks Metro was delayed, I was looking forward to it because the first was amazing, even on the 360.
SR3 was amazing, but even it's sales numbers were a little low but hopefully enough to keep them around and making more SR games(Sounds like it according to this call at least).
maabus1999
Member
Most likely other companies may wait for THQ to enter bankruptcy and try to buy off parts of the company that have value (e.g., relic, volition).
Steverulez
Member
Outside of S-E who bought Eidos is there any other Japanese company that could be tempted to pick them up to "Diversify their portfolio"
I wouldn't be surprised if Ubisoft tried to get their studios.
Tom Clancy's Saints Row The Forth - Sounds good.
I wouldn't be surprised if Ubisoft tried to get their studios.
Tom Clancy's Saints Row The Forth - Sounds good.
4 million for SR3 seems pretty good to me. If your prediction was that it would sell less than BF, MW, and Skyrim, well then, yes you were right, but there's no prizes for stating the obvious.
Ether_Snake
å®å®å®å®å®å®å®å®å®å®å®å®å®å®å®
Gonna get bought by Konami I bet. Maybe Namco Bandai. Mayyyyyyyyybe Capcom, but I really doubt it.
SolidSnakex
Member
Capcom have said that they're looking at to buy Western devs. THQ are a lot like Eidos before Square bought them. Lots of talent but the management doesn't know how to handle it.
It was more along the lines of it being treated harshly by the buying public due to the launch month it was set in. Pretty sure I have a post somewhere in November stating so. Kinda unfortunate since I loved SR3, but I suppose even the "yearly plan for DLC!" did not even out whatever ramifications were incoming.
Mismanagement total
Ether_Snake
å®å®å®å®å®å®å®å®å®å®å®å®å®å®å®
Yeah but I don't know, Capcom seems to be happy doing business with studios on the brink of closure.
Neuromancer
Member
It's really impossible to say whether the game would have sold better at a different time though. There's a reason why publishers keep dumping games out at the holiday time frame.It was more along the lines of it being treated harshly by the buying public due to the launch month it was set in. Pretty sure I have a post somewhere in November stating so. Kinda unfortunate since I loved SR3, but I suppose even the "yearly plan for DLC!" did not even out whatever ramifications were incoming.
Mismanagement total
Square or Warner Brothers.
TheVoidDragon
Member
Games don't get delayed for no reason.
True dat.
nephilimdj
Member
Square would fire everyone like eidos, wouldn't be good :/
Ignis Fatuus
Banned
Warner Brothers sounds like the best case scenario for gamers, exclusive DLC shenanigans notwithstanding. If they ate THQ they could become a true powerhouse with some judicious management.
- Status