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[Busty]

The remaining publishers would be better off letting THQ collapse and obtaining the bits and pieces they want in a piece meal approach.

That's true, but isn't that how WB got Midway and it's assets? Some kind of court appointed liquidation sale that no one else even bid on.....?

 

[SatelliteOfLove]

It costs 41 million dollars to develop a mid-range console game?

No way.

Next generation. Head to the storm cellar, Louise, a big'uns blowin' in.

 

[Grayman]

That's true, but isn't that how WB got Midway and it's assets? Some kind of court appointed liquidation sale that no one else even bid on.....?

I do not know about the specifics of the WB and Midway deal. Buying the company and its debt as a whole is bad idea for another publisher though, especially as a lot of the license deals probably get voided.

 

[bangai-o]

Honestly my brain has been rationalising either way and I don't have experience of watching other companies going bust. What usually happens to the prices of their games?

THQ wont drop the price until sales reach a certain point?

 

[Htown]

Seriously. How on Earth did they expect it to sell?

Same reason they thought DeBlob 2 was going to sell on PS360.

Stupidity.

 

[Grayman]

Honestly my brain has been rationalising either way and I don't have experience of watching other companies going bust. What usually happens to the prices of their games?

Before THQ goes bust they will likely lower the prices or steam sale them to try and hit targets to keep payroll going. They will be able to use game prices to manage their short term cash flow.

When the company dies the games probably stay the same price or get cleared out fast in the case of physical copies.

 

[Vilam]

I thought they where less than 100 after the Red Faction massacre last year(since an entire team gone).

The Red Faction team didn't get laid off.

 

[RumblingRosco]

I don't really follow the stock market, has a reverse split as big as 1 for 10 ever happened? I can't think of any reason to really do that besides being in THQ's situation...

Revlon did a 1-10 reverse split in 2008: http://www.bloggingstocks.com/2008/04/12/revlons-reverse-split-wont-make-the-stock-attractive/

 

[Scirrocco]

Before THQ goes bust they will likely lower the prices or steam sale them to try and hit targets to keep payroll going. They will be able to use game prices to manage their short term cash flow.

When the company dies the games probably stay the same price or get cleared out fast in the case of physical copies.

What do you think they'll do about DLC? Will they get unlisted from XBLA or PSN? I would think as long as the company still exists on paper and MS and sony had some place to send bills to they'd leave them up, but i don't know that much about the back end of the online stores.

I've been thinking about buying "Gangsters in space" for saints row three, and i'd hate for it to be removed before i get the chance.

 

[Sentenza]

Relic and Vigil worth nothing, only Volition worth something in the entire group

As far as I know both Relic and Vigil are financially healthy parts of the company.
Maybe not as profitable as the Saint Row franchise, but not really money sinks. They are doing just fine.

 

[Grayman]

What do you think they'll do about DLC? Will they get unlisted from XBLA or PSN? I would think as long as the company still exists on paper and MS and sony had some place to send bills to they'd leave them up, but i don't know that much about the back end of the online stores.

I've been thinking about buying "Gangsters in space" for saints row three, and i'd hate for it to be removed before i get the chance.

I don't think this has happened yet in the DLC age. Developers have died but their publishers still exist. One case to be fearful of was talked about here awhile ago: I think it was system shock had the rights bought by a company not interested in gaming and they have just sat on it with the game out of print.

Volition and Saints row are the most valuable things they have to sell off so one of the big publishers will likely get ahold of it and the cheques will keep flowing.

 

[massoluk]

Only $41 million? Their liability must be humongous

 

[saunderez]

I've been thinking about buying "Gangsters in space" for saints row three, and i'd hate for it to be removed before i get the chance.

I wouldn't bother. The only DLC that was worth playing was "The Trouble With Clones" the other 2 packs were trash.

 

[Data West]

I hope they turn out fine. I love their 40k stuff, Darksiders, and Saint's Row.

I already have ideas for SR 4. Like how you do a Mob Wives spoof with Shaundi.

I will buy Darksiders 2 and that Saint's Row expansion even though I thought the dlc was so so

 

[Scirrocco]

I wouldn't bother. The only DLC that was worth playing was "The Trouble With Clones" the other 2 packs were trash.

Really? I watched a Giant Bomb quick look, at it looked pretty good.

 

[abrack08]

My cousin's married to a guy who was pretty high up at THQ (Senior Vice President), he left a little while ago, not sure how long exactly. Looks like he got out at the right time.

 

[ElectricBlanketFire]

I have a friend who was recently hired at THQ. From the sound of it, they're basically going from quantity to quality.

Or at least, that's the idea.

 

[ari]

Activision is just gonna buy it out anyway.

Saints row, metro and the wwe brand can be glorious if done better.

 

[SpaceDrake]

Regardless of the ratio chosen, the reverse split will not affect the market value of the company, which currently stands at $41.75 million, or about what it costs to develop a mid-range console game.

My ass. Developers the world over - but particularly in Japan - develop excellent games for a tenth of that budget. Even factoring in promotion it would never cost that much, unless you spend your advertising dollars poorly.

 

[Desty]

Unless they get bought, I don't see how THQ will survive the transition to next gen. As other posters have mentioned, it seems like they are just one flop from running out of cash.

 

[charlequin]

Only $41 million? Their liability must be humongous

We did some speculative digging on this when the whole THQ trainwreck started and Nirolak certainly remembers better than I, but their liabilities are quite a bit greater than their market cap, at least.

 

[Grayman]

We did some speculative digging on this when the whole THQ trainwreck started and Nirolak certainly remembers better than I, but their liabilities are quite a bit greater than their market cap, at least.

http://investor.thq.com/phoenix.zhtml?c=96376&p=irol-newsArticle&id=1696208
LIABILITIES AND EQUITY 2012 2011
Accounts payable $ 42,905,000 $ 100,550,000
Accrued and other current liabilities 83,088,000 137,922,000

December 31 numbers were a lot higher in an SEC filing I read earlier today.

 

[Combichristoffersen]

Really? I watched a Giant Bomb quick look, at it looked pretty good.

'Trouble With Clones' is good and 'Gangstas in Space' is OK, but don't bother with the Genki DLC.

 

[RumblingRosco]

I should go over to Volition's office and ask them how things are doing; I'm only about 10 minutes from their headquarters.

P.S. their online studio tour is fun to browse: http://www.volition-inc.com/studio-tour/

 

[Cygnus X-1]

THQ worth only 41 millions? Holy smokes! I could almost buy them.