THQ: Fiscal 2013 – How to Stay Afloat
It’s a sad day indeed when a developer announces what THQ had to share with us all these last days. Known for some great games such as Company of Heroes, Darksiders, Saints Row and several instalments in the Warhammer universe, THQ is in a bit of a pit at the moment.
Indeed, the problem is what it always is - money. Net Sales in the fiscal 2013’s second quarter, which ended on September 30, went up to $107 million while the company had an operating loss of $19 million. Its last 2012 Q2 results amounted to $146 million in net sales with an operating loss of $97 million. There are plenty of other numbers to crunch on, so if you are interested, head over the official report.
Trying to plug the holes in 2012, THQ has done some major corporate reshuffling and reorganized its product line. As well as that, it had to close down studios thus laying off staff and was forced to enact a reverse stock split (current value: $3.02). This year’s big launch, Darksiders II, sold 1.4 million copies in Q2 2013 which was, by THQ CEO Brian Farrell, ‘blow expectations’.
Furthermore, the company now delayed some of its future titles such as South Park: The Stick of Truth, now set for March 5 2013, as well as Company of Heroes 2 and Metro: Last Light, both of which have no official date as of yet. While this gives the company more time to develop the games, which should have, in theory, a positive effect on the final game, it also means that THQ might have to rely on outside investors to realize what they’ve planned. Indeed, THQ has been ‘exploring strategic alternatives’ with a company under the name of Centerview Partners LLC and has, perhaps due to this, been strangely reluctant to post additional information on future plans after releasing the 2013 fiscal quarter.
On a more cheerful note, THQ was happy to report that Saints Row: The Third sold more than 5 million copies. A sequel is already on its way, holding content of the previous cancelled stand-alone expansion, Enter the Dominatrix. Where THQ will be able to realize all their plans for the big shots – only time will tell.
Update: THQ stocks are down to $1.74 plummeting by $1.28 (at the time of writting)