Rumor: THQ all but dead, cancels 2014 games, looking for a buyer

[Makenshi]

Hoep this is the right place to post such thing and it's not breaking any rule (irrc, it isn't, but memory can fail, it's been so long since I read them...)

=========================================================

January 15th, 2012 Posted in General Gaming News, News
Posted By: Valay

It seems that THQ is in a state of flux right at the moment. The company’s 2014 game lineup has been cancelled, and the publisher is currently trying to find a buyer.

Kevin Dent, who has been sending out a slew of tweets about the situation, said that “THQ are offering themselves to Asian firms to increase value!”

Games Workshop’s MMO has been canned. This was almost certainly Warhammer 40,000: Dark Millennium Online.

Other THQ projects, such as Darksiders II, Metro: The Last Light, and Devil’s Third are presumably still in development.


Source: http://gamingeverything.com/13910/ru...g-for-a-buyer/

============================================

The source directs to neogaf, which directs to some tweets by some guy called Kevin Dent, suppose he's a big figure

Hope Metro and Darksiders come out of this unharmed, really want to play them... also hope Relic/40k are not affected

[Mantaray]

sensationalist titles are wonderful arnt they?

okay. lets open this up a little bit more and make discussion.
recently we've been hearing that THQ just cancelled their entire schedule for 2014.
with this goes a few games including the 40k MMO Dark Millennium Online

http://www.neogaf.com/forum/showthread.php?t=459014

now im not particularly privy to THQ's economic stance. but there is a fair bit of circumstantial evidence that suggests they are preparing to sell the company.
what does this hold in store for Relic? as far as we know we're looking at Dawn of War 3 at some point in 2013...

what do you think for the future of Relic?

[Mantaray]

allready got a post in GD
>.>

[DrRansom]

Bankruptcy asset? Sold off to some other developer? Glorious and short lived independence?

[Shuma]

Saw this on /v/:



Guess it was just a random rumor.

[Maktaka]

Makenshi wins by one minute!

Also, crap. Relic, Volition, 4A, and Vigil are some really good studios and it would really suck to see them sold off for parts. I know THQ is hurting by the absence of a place for the second tier publishers on the console. There's just not enough profit margin in retail to support them anymore.

[Busby]

Who is Kevin Dent, exactly? I've never heard of him and to me it just seems like some random twitter account spewing off crap.

[roflmao]

[HK] Bunny. Anyone can read that. Whoever crossed out his name doesn't know how to cross out names, heh.

[General Stukov]

Its the 2014 lineup, there's still 1 more year before that so they will use your services until its overwith. Honestly I am getting a bit upset with all these no names spouting shiz they don't know.. I pray for the sake of all that is good and holy that THQ doesn't go under, if possible THQ needs to remember that tons of their IP's will make them some insane money if they put the effort. To me it would seem like. The amount of 40k fans is just as large as Starwars or World of Warcraft.

[Shuma]

The amount of 40k fans is just as large as Starwars or World of Warcraft.

That's... Insane. There's no one in the world who doesn't know what Star Wars is, you can't possibly say the same for Warhammer 40k.

[Kane935]

In the developed world, Shuma, but the point still stands. Anyway, looks like this thread is over, as the rumours were false... FOR NOW!!! MANIACAL LAUGH! MANIACAL LAUGH!

[n0z3k1ll3r]

That's... Insane. There's no one in the world who doesn't know what Star Wars is, you can't possibly say the same for Warhammer 40k.

There's a difference between being a household name and having a massive fanbase. Although I don't necessarily disagree with you.

[Mantaray]

well.. shuma summed this up nicely.. if sledgehammer says its cool then its cool.
i would like to see a nice little THQ press release dispelling this tho..

[Mac_Bug]

So if this is true, how does this guy know about it? Why isn't he bound by NDA to not talk about this? Did he think for a second that for example, since there are thousands of jobs on the line, maybe he shouldn't talk about it until it's been officially announced?

[Starblade]

Merging the GD one with this one, the Lounge is the right place for it.

[Imperial Dane]

Great. Threads get merged and my post vanishes.. Well let me restate. I am rather starting to get the impression this might be a malicious rumour. I mean how is this guy in possession of knowledge like this ? Plus other people who actually seems to be in the knowhow about this also seem a bit perplexed at this.

[Misiok]

Either a rumour, or damage control by Sledge or something else entirely.

[Mac_Bug]

I seriously doubt Sledge knows anymore than the rest of us

[White_Pointer]

Yeah Kotaku reported this too: http://www.kotaku.com.au/2012/01/thq...-says-insider/

If this is true, things aren't boding well for Relic. I was also really looking forward to Darksiders II so hopefully Vigil don't get hit hard either.

With any luck these studios are big enough to go back to the old method of looking for publishers for their titles, rather than having THQ publish everything, but we'll see. Hopefully the rumours are untrue, but we do know that THQ has been struggling financially recently (and have shut down a number of their internal studios in the past 12 months), so maybe there's some truth to this.

[Wargrim]

So, are the rumours really coming from just a single source, that is not a THQ - Member? Sounds fishy.

[CommissarRezail]

It could be EA spies, trying to drum up more customers for mass effect 3, generals 2, and swtor. I guess its time to be wait and see Oliver again... or, I contact relic, and cry at their desk all day for an answer..

[Akranadas]

Yeah, totally EA. I mean they are the big bad of the gaming industry right, everything that happens in it has to be their doing

[Nanaki]

Actually, Activision-Blizzard took their place as the big bad.

[overmind2000]

I thought UBI "DRM madness" Soft were the badguys with their love of the all time internet connection DRM even on singleplayer games (even though I note they like to patch it out of many new releases a few weeks/months after release).

[Jonny]

I don't think any of them have ever annoyed me personally as much as THQ's Steam embargo last year. "You British, pal? You ain't buyin' this on Steam like everyone else in the world can, you get your ass down to GAME and buy it." Oh really? How about I get my irrationally stubborn hat out and refuse to buy it anywhere? Not even the most annoying publisher decisions have provoked such a reaction from me before.

[lizardmech]

I don't understand what THQ has been doing the last few years, they have plenty of reliable franchises. While they may be niche products they could have just kept releasing games with modest marketing budgets that could make a profit on 1 or 2 million sales. Instead they have spent the last 2 years trying to copy Activision with huge advertising campaigns while antagonizing customers with huge regional price increases, blocking entire regions from steam and cutting game development resources.

The game industry's obsession with having the next Call Of Duty seems very self destructive. Even EA who have a more money to waste on outlandish marketing have a string of failures.

[Akranadas]

THQ lost lots of money by flooding the market with countless Nickelodeon based games and making their countless studios work on them rather than focusing on solid products.

[Bunny]

This is HK bunny.
This has blown out of proportion. This was a photoshop done for the amusement of 4chan. This was not an official conversation or even a real one. Please remove all facts gained from this conversation as it never happened

[White_Pointer]

Kotaku AU posted this:

http://www.kotaku.com.au/2012/01/thq...-2014-line-up/

Earlier today rumours circulated that THQ was in troubled waters with claims that they had cancelled their 2014 line-up and were offering themselves for sale. THQ Australia has responded to these allegations.

The official statement we received from THQ Australia is as follows:

THQ has not cancelled its 2014 line-up, and has not made any decisions regarding the planned MMO. As part of the ongoing review of our business, we have made decisions to ensure that the company is strategically addressing the most attractive markets. As we have previously announced, we have dramatically reduced our commitment to the kids’ boxed games sector which leads to a significantly more focused release schedule moving forward. Our slate for calendar 2012 and beyond is focused on high-quality core games and continues to build our digital platform and business. We are excited for our pipeline of original and high-quality content along with our relationships with some of the best talent in the industry.

Additionally, we are thrilled with the great performance of Saints Row: The Third, which on a like for like period in North America has tripled in sell-through from Saints Row 2. In addition, WWE ’12’s worldwide sell-through sales are up almost 40% year-over-year for the same sales period with fewer platforms. According to NPD, for the month of December and the 2011 year, THQ was the #5 publisher overall, #4 third party, with reported sell through growing over 18% in a market that was down almost 6%. And coming up next, we have two great titles for the first half of the year including UFC Undisputed 3 and Darksiders 2.

The representative for THQ said that no further comment would be offered at this time.

[konfeta]

http://kotaku.com/5876348/thq-says-i...ts-2014-lineup

Oh you cheater

[White_Pointer]

Haha! My Ninja post skills are unrivalled!

[Akranadas]

Hence the reason gaming news sights should stop reporting rumors as news.

[sporty]

This is definitely not a clear statement supporting the MMO in my book. But it strongly denies the 'entire 2014 canceled' bit, that's a relief

[Hirmetrium]

I've been banging on about this for months - it's amazing that one person's tweet that is followed by a newsite snowballs so fast.

Facts:
1. Homefront did not meet investor expectations, was hit hard by reviews (rightly so, although they exclaim every other pile of shit is great)
2. Space Marine was not a "Massive Hit", rather a moderate hit. I believe the Q3 hinged on this? (somebody call me out on this one).
3. Q4 performed well, but Saints Row: The Third hit after Battlefield 3/COD:MW3/Skyrim time, which had a massive impact on its sales.
4. Share price has been falling sharply for the last 10-12 months.
5. Repeatedly delayed announcements of new games. Notably, I don't think any new Relic titles have been announced this year (i.e. press releases, not Danny Bilson), which I think is a first - no expansions, new games or anything, which bodes very poorly
6. Red Faction IP killed off.

At this point, THQ's bag has Darksiders 2, a sequel to a game which didn't have very good initial sales but they built up over time, Metro, which was niche and in the same boat as Darksiders with its late sales performance, as far as we know no new Relic RTS (despite holding 3 IP cards in homeworld, Dawn of War and Company of Heroes) and an MMO which is looking less and less likely to be successful in a market that has turned to free to play games. I don't know how much they have spent on development, but with SWTOR the latest dreadnought to take down I don't see it being successful.

And, in response to earlier comment on fans, even if 40k has as many fans as Star Wars, 40k fans spend their money on models - not PC's/Consoles/Video games. Star Wars fans will buy anything and everything with the logo on it. I think this is possibly one of the biggest problems with the 40k IP - there are plenty of people who love it, but they are just not willing to go out and buy a PC powerful enough to play Dawn of War 2, let alone the game itself and have spare time to play it. It's a conflicting hobby. The conversion of TT players > VG players is not there at all, and THQ are fooling themselves if they expect the MMO to succeed on the backs of 40k. Not to mention how elitist 40k fans are (OMG you play as space marine? Rouge trader lol! etc).

To summarise, THQ is in a rut and at this point, the fact that EA hasn't snapped them up is a really bad sign. The Asian market is big, yes - but THQ owns western licenses and IP. Games Workshop don't want to break into Asia do they? Big loss number 1. Even if THQ gets bought out, GW's hold over the IP might mean we don't ever see another Dawn of War game again.

This is just all kinds of bad. It's upsetting to see a company as big as THQ go down, but it looks like it is happening (and under wraps) and its likely a result of the modern VG marketplace. You just can't be a middling publisher - you need to be one of the big boys with a big IP to ride on.

Finally, Akranadas - despite those "Nickelodeon kids games", I was under the impression they were a massive resource of revenue - cheaply produced games which sold loads to kids but didn't have any staying power (hey look, its the Wii uDraw tablet!). The funds from those games kept THQ afloat and funded studios like Virgil, Relic and Violation. I'm not sure if that is the case, but ever since THQ restructured and moved focus away from those titles, they have been in decline.

This might be a rumour, but I'd be damned if it isn't the truth or close to it. The facts support it. Even if I don't want it to be true, the lack of game announcements and the fact they are focusing on the Wii U (something I already believe to be a dead console) can't be good either.

I guess I'm just upset that the first time in 6-8 years, there isn't a Relic title I can look forward to.

[Makenshi]

I guess I'm just upset that the first time in 6-8 years, there isn't a Relic title I can look forward to.

QFT, everyone here on RN at this point is (or seem to be) kinda on edge for that exact reason. I for one am on the same boat as you...

[lizardmech]

I don't think the WH40K fanbase is too small to support games, the problem is the large publishers business models are horribly broken and need absurd amounts of sales to prop up their bloated retail network. Before the PS3 and xbox 360 games didn't have 50+ million dollar marketing budgets and selling 1 or 2 million copies was considered great. If they can sell 1 million+ WH40K RTS games every couple of years that should be more than enough to pay for development and make a decent profit especially after expansion packs and any paid content.

[Zero3eleven]

It's not looking good for THQ, somethings gonna happen over the next few days that will determine the companies future...

Management has been silent since the stock has plummeted from $2.00 to 0.65 cents, as I was typing this I found a post from a statement released Friday.

Additionally, we are thrilled with the great performance of Saints Row: The Third, which on a like for like period in North America has tripled in sell-through from Saints Row 2.
In addition, WWE '12's worldwide sell-through sales are up almost 40 percent year-over-year for the same sales period with fewer platforms.

According to NPD, for the month of December and the 2011 year, THQ was the number five publisher overall, number four third party, with reported sell through growing over 18 percent in a market that was down almost 6 percent. And coming up next, we have two great titles for the first half of the year including UFC Undisputed 3 and Darksiders 2."

THQ has not cancelled its 2014 line-up, and has not made any decisions regarding the planned MMO.

As part of the ongoing review of our business, we have made decisions to ensure that the company is strategically addressing the most attractive markets. As we have previously announced, we have dramatically reduced our commitment to the kids' boxed games sector which leads to a significantly more focused release schedule moving forward. Our slate for calendar 2012 and beyond is focused on high-quality core games and continues to build our digital platform and business. We are excited for our pipeline of original and high-quality content along with our relationships with some of the best talent in the industry.


There was no denying the buy-out rumors in that statement and there seems to be a new one everywhere I look,

I think Relic may be looked at as the anchor of the dying ship from the point of view from the purchasing company, I certainly hope not...

Here's a link to the THQ yahoo boards, so you can form your own opinion... just be aware there are trolls on there too, "shorts" that will make money if the stock price continues to fall...
http://messages.finance.yahoo.com/mb/THQI

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I still believe this is a strong buy, the stock should go up 0.20 or so cents today just from that announcement alone, that's over 30%...

Here's some figures on what would happen if the company were to get bought out,

"THQI fits perfectly for a buy-out candidate:

- Beaten down with low market cap
- Do have quite few valuable brand games;
- With huge loss carry-over;
- No big debt.

Revenues for 2011 and 2012 are projected as around $850 million and market cap is only 45 million now.

That is 18.8x.

SR 3 sales will be far above expectation.
WWM selling also very well;

UFC 3; South Park, Darkside etc will be coming to market soon.

UFC 3 is one of top-selling games now (pre-order).

I can say, if THQI is sold for $200 million, the buying company can easily make $800 million profit in few years if they can get rid off lossing projects."


200 million is a low offer but if that were the case the share holders would get 3 dollars a share.. I would more than triple my investment... I bought 2,300 shares a few weeks ago at 0.73 cents

[Hirmetrium]

Thanks for sharing that zero3eleven. Guess it's already confirming what I expected when the "July announcement" became a "December announcement" which didn't happen. What felt like a big build up to a new Relic reveal just turned into "lol south park obsidian". I don't know about others, but I have little to no interest in south park.

Also, for those who really don't know the bigger picture:

That is what has happened to THQ ever since it restructured and moved away from its "kiddy" games. Even Relic's games haven't saved the company or kept it floating, with the stock slumping since Company of Heroes - at this point it really is like watching the titanic sink.

[CommissarRezail]

Hmmm, that zig zag line certainly likes going down. Perhaps they should top making games and dropping them like they didn't exist, that may help. Just my opinion though. I think coho could of helped, I my self was about to buy several things from cash shop,but you know what happened next.

[titlams]

People pay way too much attention to stock markets without looking/understanding at how the markets and companies work in the bigger picture. EA and Activision-Blizzard have both been through slumps in the last few years and both did exactly what THQ are doing now. Rearranging their portfolios and cutting the excess rubbish. Their is nothing to worry about yet, I would be very surprised if a buy-out happens, more likely is THQ will sell of it's lesser IPs (possibly homeworld included) to bank roll it's next few games. The 2012/2013 lineup is not looking all that bad. We shall see but I wouldn't be surprised if nothing happens.

[DeafMute]

Tbh There is a bright side to all this.
Im happy to see if this all does come to pass, the company is broken down and rebuilt by whoever has the cash to do so. Because clearly whats happening right now isnt working so let it burn down. Burn down and rebuild.

[CommissarRezail]

Like a Phoenix DeafMute?

[Hirmetrium]

titlams, while that might be true, the picture is still that THQ has almost hit rock bottom. Activision and EA didn't manage to go that low before recovering if I recall, and their big releases have genuinely boosted shares. When Homefront hit, THQ's shares did nothing but tumble and never recover. There has been nothing but bad news since.

There are folks who hold shares in this company, some of whom also work for them. I can't imagine this paints a good picture for them either.

Even if THQ is cutting back on their fat, where are the game announcements from one of their biggest studios, Relic? This is starting to look like the first year in a while that there is nothing from Relic. Is that not a serious sign for concern? I mean, quote development cycles at me all you like - but there is no announcement, which is at least what we normally have by this stage.

[Shuma]

Even if I don't want it to be true, the lack of game announcements and the fact they are focusing on the Wii U (something I already believe to be a dead console) can't be good either.

I really wish i had a penny for each time someone says that something Nintendo is doing is going to fail and doesn't.

Im happy to see if this all does come to pass, the company is broken down and rebuilt by whoever has the cash to do so.

Would it still be a bright side if EA bought THQ?

[Imperial Honour]

I do believe you are correct there Hirm, and hopefully I'll be able to find the sources to back that up soon.

Correctly if I am wrong, since it may just be a misguided perception, but did not THQ also have fewer so called AAA brands back then too? I do believe, rightly or wrongly, that before their restructuring THQ's business strategy revolved around using their financially successful "kiddy" games to keep turning over a tidy profit for them between the release windows of their more "hardcore" or "AAA" games. It helps that back then THQ are perceived to have had fewer financially failed "hardcore"\"AAA" games, which helps considering these types of games can be pretty costly when you think about it. It could be a total misconception - but it seems like THQ did better when they had fewer, but more financially successful (better developed?), big budget brands paired alongside a torrent of different financially successful "kiddy" games.

All this could just be deemed hersay until I produce sources though. Though it would seem what actually sparked the downfall in THQ's "kiddy" side of the business was the rise of the Wii, or so THQ said back in 2008 since their previous fiscal year in 2007 was a success for them.

[titlams]

EA ended 2007 with their shares at 59.56, they ended 2008 with their shares at 15.32. That is a massive slump and THQ are nowhere near that level. Yes their share value is a lot lower but it has always been that way. It's not always about the value and sometimes about the overall drop. Stock markets require a lot of analyst before you can make assumptions on even the big rises and falls. A better look at the stock would show that Homefront losing stock value is utter crap and that was already the expected trend. To see where THQ went wrong you are a lot better off looking at their assets and plans than their release successes and stock value.

Game announcements are all about timing for big effect and little about keeping share holders happy. Don't expect them to start announcing games until they feel it is the best moment no matter the financial situation. Personally I'm going to wait until the end of January before I'm buying anymore with expectations that I believe end of Q1 is going to be the best time for their future announcements. THQ do currently have a lot of questionable things going on and people, particularly share holders, should be worrying. But it is my opinion that they are going to be fine.

Also: Expect February to be a interesting, I'm hoping (betting) on the shares steadying with maybe a slight rise as existing holders, try to bump the price up.

[DeafMute]

@Shuma. Ofcourse that wouldnt be good but I trust something will come about out of all of this.
Maybe relic for one will consider making more mainstream games. Who knows.

Did hear that the STALKER team had trouble getting funding for STALKER2 because they was told to make it more CoD like to attract that audience. Owner of STALKER flipped the middle finger and look what happend. So, is the current mainstream trash of games the only way to truly feel safe in this gaming era?

[Hirmetrium]

Relic should stick to RTS games, because, surprisingly, they are a highly acclaimed RTS game making studio. I honestly believed back when Company of Heroes released they were well on their way to being the next Blizzard. Turns out I was wrong, and their starting to look more like Westwood studios (Space marine is to Relic what Renegade was the Westwood :P). Making "more mainstream games" would be bad, but moving out from the 40k IP (which most of the studio must be tired of by now) might not be such a bad idea.

As for STALKER2, I think that's just an example of your niche "Metro" game market not being big enough. Ironically, THQ published the first STALKER game.

titlams - I never said that THQ wouldn't survive - just that it is in a very bad place at the moment, with a catalog of invisible games with "big names". Danny Bilson is obviously passionate too, but so much so that keeping him in a back room for a while with his twitter account deactivated would be a good idea. I never claimed that stock was the be all, end all, but it is a very important indicator in how a company is perceived in terms of performance and investors.

[No Surrender]

I think (and hope) that THQ will pull through this mess. A corporate restructuring is a painful process for most companies that undertake it and we're seeing the same in a very difficult market given that most people are tightening belts and therefore PC upgrades and games are luxuries fewer people will spend on. That said, Saint's Row 3 did quite well over the holiday period and made it onto a few Game of the Year lists, so I foresee sales for that remaining relatively strong. Space Marine may not have been a huge hit but I would imagine that it sold well enough to provide a solid return on investment. I think that given a bit of time (and a bit of bridging finance, most likely) THQ's new strategy of focusing on "core titles" (i.e. AAA productions with widespread appeal) will actually pay off.

That said, if THQ does get sold off, I hope that Relic gets spun off independently like Bungie did. Probably won't happen, but I miss the days when Relic was "indie"

[Yankov]

what... it didn't cancel 2014 lineup because there isn't 1 to cancel?