THQ Files for Bankruptcy

[Greybriar]

According to this, THQ has filed for Chapter 11 bankruptcy.

I had heard for quite some time that THQ was in financial difficulties. Now it looks as though those financial difficulties have come to a head. I don't know what effect this will have on us gamers.

[LongBlade]

Game publishing is a rough business. Costs are fixed and ongoing while you never know how a game is going to be received.

They've had some decent games, but their last smash hit was Company of Heroes. Wasn't there a big boondoggle about Company of Heroes online?

[sandman2575]

What does this portend for CoH 2, I wonder?  Have to admit, that is a game I really am looking forward to.  Had no idea about the financial troubles...

[jomni]

Ah they can sell WH 40K rights to Sega!

[Gusington]

I'm really looking forward to CoH 2 also... :/

[Bison]

Bankruptcy does not necessarily mean that the company will go out of business.  It may result in some sold assets and what not but also allows them to remove some debt.  I gotta think they know that CoH2 will be a big seller especially if it's done well.

[MetalDog]

City of Heroes? Is that a super hero mmo?

[CptHowdy]

City of Heroes? Is that a super hero mmo?

hehe company of heroes. city of heroes was just shut down though. shame, was one of the first mmo i played. yeah yeah i never played ultima online or everquest. did play some muds though!

[Arctic Blast]

Game publishing is a rough business. Costs are fixed and ongoing while you never know how a game is going to be received.

They've had some decent games, but their last smash hit was Company of Heroes. Wasn't there a big boondoggle about Company of Heroes online?

Actually, they've had a number of 3 million + sellers. The Dawn of War series has done well, Saints Row 2 and 3, their WWE games for consoles, Red Faction Guerrilla and even Homefront were all big hits. Darksiders 1 and 2 and Metro 2033 all had solid sales, too.

The problems were bad expenditures. Their marketing spending was insane...they threw money at pushing Darksiders 2 with insane expectations that it would be some sort of 10 million selling mega hit. You know you done screwed up when 2 million sales is considered a flop. They overspent on licenses for kids properties while everyone else was pulling back on licensing fee payouts as that sector became less profitable. Oh, and then there was the debacle known as the UDraw.

Their new President put up a statement about where they go from here that's worth a read.

Either they pull out of their 2 year tailspin next year with Company of Heroes 2, Metro Last Light, the South Park RPG and 1666 (new property from Assassin's Creed creator) or this Clearlake Capital Group that's funding them rips them apart and sells the studios off piecemeal, which would still likely mean that devs like Relic and Volition would pretty easily find new homes in a new company that buys them up.

[Gusington]

Is there a link for 1666?

[Grim.Reaper]

Is there a link for 1666?

Only info I could find, but nothing real conclusive at all....

http://www.ign.com/articles/2012/03/14/what-is-1666

[Nefaro]

Ah they can sell WH 40K rights to Sega!

<<< This.  To someone who'll put a wider use to it.

Fork it over, you bastids!

[bayonetbrant]

City of Heroes was NCSoft, wasn't it?

[sandman2575]

The problems were bad expenditures. Their marketing spending was insane...they threw money at pushing Darksiders 2 with insane expectations that it would be some sort of 10 million selling mega hit. You know you done screwed up when 2 million sales is considered a flop. They overspent on licenses for kids properties while everyone else was pulling back on licensing fee payouts as that sector became less profitable. Oh, and then there was the debacle known as the UDraw

Either they pull out of their 2 year tailspin next year with Company of Heroes 2, Metro Last Light, the South Park RPG and 1666 (new property from Assassin's Creed creator) or this Clearlake Capital Group that's funding them rips them apart and sells the studios off piecemeal, which would still likely mean that devs like Relic and Volition would pretty easily find new homes in a new company that buys them up.

great post -- thanks for this insight --

I have to believe you're right that Relic etc. get by no matter what happens to THQ -- and that sounds like a stacked lineup THQ is coming out with in 2013.  The dev. videos for COH2 on Steam look terrific -- this is not a project that looks like it's in danger of becoming vaporware.

anyway, i feel better now...

[eyebiter]

moved to tech talk