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THQ's stock drops 50% after earnings implosion, [Tanks 22%+ again, worth $7.95M]

C

carlos

Member
Nirolak said:
Oh I see what you meant.

Yeah, that's totally true, and why it makes way more sense to wait for them to die and pick up the assets.
Click to expand...

Indeed, it's just weird to me since Saints row 4 sales alone should take care of the 100million needed, and the NOL I mentioned would also benefit a buyer way more than the buying price.

I'm sure that consultant they hired will be able to find someone to match them up with; and who knows, maybe they cash needs aren't really that large and some momentary financing could have them survive till the "big three" launch in spring. A good 3rd quarter and xmas season combined with solid WWE sales could also help.

They have beat their guidance two straight quarters and just now they say they realized the cash crunch? They should've seen this coming since months ago; sounds like some shady dealings going on behind the scenes with management, IMHO
 
A

Aostia

El Capitan Todd
EatChildren said:
In the eyes of some silly folk, yes, though the nonsense of "Nintendo should buy *developer/IP*!" has gone on for quite awhile.
Click to expand...

well, I think that THQ portfolio could fill Nintendo lack of western IPs, without "money-hatting" every single exclusive game :p
 
T

Twinduct

Member
FFS please just get out COH2 ... THQ swansong ~~

DTKT said:
Valve buying Relic would be pretty awesome. I just hope they can use the COH IP too.

But there is no reason for them to do that, so it's never going to happen, just a nice dream.
Click to expand...

Don't play with my heart ~~ <3
 
D

DTKT

Member
Valve buying Relic would be pretty awesome. I just hope they can use the COH IP too.

But there is no reason for them to do that, so it's never going to happen, just a nice dream.
 
P

perfectchaos007

Member
EatChildren said:
In the eyes of some silly folk, yes, though the nonsense of "Nintendo should buy *developer/IP*!" has gone on for quite awhile.
Click to expand...

Nintendo let go of Rare and look where they are now. Camelot left Nintendo for a while as well, and they didn't release anything worth a damn during that time. Nintendo can work magic for developers, and the proof is in the aftermath of developers leaving Nintendo.
 
N

Nirolak

Mrgrgr
perfectchaos007 said:
Nintendo let go of Rare and look where they are now. Camelot left Nintendo for a while as well, and they didn't release anything worth a damn during that time. Nintendo can work magic for developers, and the proof is in the aftermath of developers leaving Nintendo.
Click to expand...

Yeah, getting dropped by Nintendo was pretty much a death sentence for Rockstar North.
 
X

xenist

Member
As a currently unemployed person I symphatize with anyone whose job is in jeopardy.

However my heart only cares about Relic.
 
C

Christberg

Member
EatChildren said:
In the eyes of some silly folk, yes, though the nonsense of "Nintendo should buy *developer/IP*!" has gone on for quite awhile.
Click to expand...

For most of us it's about replacing Rare/ beefing up their western focused output but yeah, there's a limit where it just gets silly.

Regardless THQ has a whole lot of talent that I'd hate to see go hungry.
 
F

fabricated backlash

Member
perfectchaos007 said:
Nintendo let go of Rare and look where they are now. Camelot left Nintendo for a while as well, and they didn't release anything worth a damn during that time. Nintendo can work magic for developers, and the proof is in the aftermath of developers leaving Nintendo.
Click to expand...

Nintendo is a well organized publisher. A good publisher is just as important as a good creative team, or a great director.

It's not that those teams are destined to fail, but I guess a lot of them thought that the quality and completion/shipping of their games was all done by them alone... and then weren't able to adjust.
 
T

Tempy

don't ask me for codes
Not that I know anything about business, but could they sell any of their properties *now* and use the proceeds to stay afloat? Or would that be akin to suicide?

...what do they need to stay afloat?
 
N

Nirolak

Mrgrgr
Tempy said:
Not that I know anything about business, but could they sell any of their properties *now* and use the proceeds to stay afloat?

...what do they need to stay afloat?
Click to expand...

Well, they've already been doing that with things like selling their UFC license to EA.

As for staying afloat, they basically need the three games they delayed to be major hits and some kind of interim funding, or to sell off some more of their existing things to try and survive until those games release and then hope for the best.

That said, the break even point for South Park is 2 million and they're hoping for quite a bit more, so...

Gamasutra said:
South Park requires a relatively smaller investment than other titles due to its simple animation. That project's break-even point is also 2 million units, though the publisher believes it can sell well above that, THQ told Pachter.
Click to expand...
 
tkscz

tkscz

Member
Well, THQ should look on the bright side, they aren't Zynga.

Nirolak said:
Yeah, getting dropped by Nintendo was pretty much a death sentence for Rockstar North.
Click to expand...

Silicon Knights :(

Though wasn't aware Rockstar North, was once apart of Nintendo, what did they make?
 
H

Hypron

Member
I might repeat myself, but I really hope Metro Last Light will get released before THQ dies. The first one was so good. :(
 
S

SolidSnakex

Member
perfectchaos007 said:
Nintendo let go of Rare and look where they are now. Camelot left Nintendo for a while as well, and they didn't release anything worth a damn during that time. Nintendo can work magic for developers, and the proof is in the aftermath of developers leaving Nintendo.
Click to expand...

According to their website they made one non-Nintendo title during their relationship with Nintendo (We Love Golf for Capcom). Nintendo hardly worked any magic on them though. You're talking about the same developer that created the Shining and Hot Shots Golf series before working with Nintendo.
 
C

carlos

Member
Going to reply to a few people in just one post:

THQ wishes they could be zynga; at least they would have cash (just no idea what to use it on)

Rockstar north got guidance from nintendo for body harvest on n64, maybe some other games, and then had a falling out of sorts

How did THQ fall from grace? Terrible management, mostly, coupled with Udraw

THQprobably doesn't need the 3 games to be huge hits(would be great for them, of course), the costs of development have already been sunk, they just need additional cash to continue operations until SR4, Patrice game, etc.
I just mean that we should forget the term "break even" in this case; they just need them to sell, to provide cash for the future, not focus on what was spent on them.

Microsoft, IMHO makes the most sense for a buyout; spare cash, NOL can be used, secure franchise exclusivity for next gen, additional internal teams
 
TheUsual

TheUsual

Gold Member
I wonder if Warner Brothers is still in the acquisition mood? Maybe not THQ entirely, but some studios and IPs.
 
O

OryoN

Member
perfectchaos007 said:
Nintendo let go of Rare and look where they are now. Camelot left Nintendo for a while as well, and they didn't release anything worth a damn during that time. Nintendo can work magic for developers, and the proof is in the aftermath of developers leaving Nintendo.
Click to expand...

You can add Silicon Knights to that list...

A significant part of this "Nintendo magic" is the fact that they are very focused and know how to manage their resources exceptionally well. They know when and where to throw around their money. Take Brain Age & Zelda for example. Nintendo knows they must unload massive development resources for a ("traditional") Zelda game - they've said this many times. For Brain Age, the resources are much lower, but the marketing, on the other hand, may be higher than many of Nintendo's games. Nintendo have a very keen sense for how to balance their buget and resources. If only other publishers would take note.

Most of these big publishers just seem to think they must throw tons of cash at every situation, in hopes to "strike gold". This sets them up for big time failure when things don't go their way. As bad as THQ's situation was, look at how many projects they had in the works that required huge bugets/resources. That doesn't sound like a company that's aware of its situation. I'm not surprised by this awful news. I just feel sorry for employees that will feel impact of such careless management.
 
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