[quote]Shares of video game maker THQ Inc. tumbled 30% after an analyst said the Agoura Hills company might need to draw on a revolving line of credit.
THQ declined to 53 cents, its lowest close since July 1995, and on a day the stock market rose strongly. The company has a $50-million revolving credit facility, according to a Nov. 9 regulatory filing.
Todd Mitchell, an analyst with Brean Murray Carret & Co. in New York, said the cancellation of the uDraw game tablet has created "a liquidity crisis for the company that puts its viability in question." He estimated the project will end up costing THQ $100 million.
"We were looking at uDraw as a bridge to this core and digital future, and that bridge turned out to be a plank we walked off of," Chairman and Chief Executive Brian Farrell said Thursday.
Farrell said uDraw's "underperformance in the quarter had the single biggest impact on our financial results." THQ will cut 240 jobs and reduce its CEO's pay by 50% after reporting a net loss of $55.9 million, or 82 cents a share, for the fiscal third quarter.
The company reported sales of $305.4 million. Excluding some items, profit was $24 million, or 35 cents a share, THQ said. The video game maker had $47.7 million in cash and equivalents on hand when the quarter ended Dec. 31.
Farrell's salary will drop to $359,250 from $718,500 for a one-year period, according to a filing with the U.S. Securities and Exchange Commission. Cash compensation for the company's board members also was cut by half, according to the filing.
"With our focused product plan, leaner cost structure, cash balance and existing credit facility, we believe the company has adequate resources to deliver on our strong multiyear pipeline of games," Farrell said Thursday.
THQ said Friday that it had reached an agreement with Los Angeles-based Innovative Leisure to create and publish games for digital and mobile platforms starting this year.
"Innovative Leisure has the expertise to deliver remarkable and cutting-edge games," Danny Bilson, a THQ executive vice president, said in a statement.
Farrell said new home console introductions could reinvigorate sales.
"As we approach a potential new console cycle it does introduce an element of risk," Farrell said. "Another way to think about that is it does present a tremendous amount of opportunity."
About 44% of THQ's games were made for Nintendo Co.'s Wii console, which has seen two years of declining sales as consumers opt for Microsoft Corp.'s Xbox 360 and Sony Corp.'s PlayStation 3. Those consoles play games in high-definition and offer online downloads of movies and music.
Nintendo has said it will begin selling a high-definition Wii U console by year-end. Microsoft also may be preparing an update to its Xbox 360 console, according to reports.
[/quote]
[url=http://www.latimes.com/business/la-fi-thq-20120203,0,6003698.story]Source[/url]
[img]http://i.imgur.com/Ugpxx.png[/img]
[QUOTE=A big fat ass;34537447][img]http://upload.wikimedia.org/wikipedia/en/1/13/RFAcover.jpg[/img][/QUOTE]
"Hey guys, everyone loves the destruction in this game series! Lets basically remove it entirely!"
THQQ
[QUOTE=DangerStranger;34537465]"Hey guys, everyone loves the destruction in this game series! Lets basically remove it entirely!"[/QUOTE]
Apparently they didn't learn from Red Faction 2.
How to fix this:
Company of heroes 2.
Probably because they took what made Red Faction: Guerrilla great - the whole sandbox destruction element - and replaced it with a boring third-person shooter for Armageddon.
man, I want to replay RFG again
[QUOTE=Ogopogo;34537484]How to fix this:
Company of heroes 2.[/QUOTE]
Oh yeah that had been good.
Also they should publish Stalker 2 to consoles and pc.
The original Red Faction is my favorite. Me and my little brother made giant tunnels on either end of the maps and tried to connect them in the middle.
I know this is probably pretty awesome for those who dislike THQ, and while there are valid reasons, personally I'm disappointed.
Because of this Metro Last Light was delayed. :suicide:
udraw
ruining what ips they did have (red faction)
homefront (now homefront 2)
buying every developer known to man and... firing all the developers...
Kind of saw this coming, it is a shame as I like some of their games (Relic is pretty good even though I think they need to stop applying the CoH formula to everything)
[QUOTE=A big fat ass;34537447][img]http://upload.wikimedia.org/wikipedia/en/1/13/RFAcover.jpg[/img][/QUOTE]
i bought that
wasn't THAT bad
[QUOTE=thrawn2787;34537528]
homefront (now homefront 2)
[/QUOTE]
They are making a homefront 2?
Didn't the launch fail and everyone hate it? Why make a second?
[QUOTE=legolover122;34537627]They are making a homefront 2?
Didn't the launch fail and everyone hate it? Why make a second?[/QUOTE]
Crytek's making it apparently.
[QUOTE=notlabbet;34537532]i bought that
wasn't THAT bad[/QUOTE]
But it wasn't a red faction game atall
[QUOTE=Protocol7;34537498]man, I want to replay RFG again[/QUOTE]
There's a small modding community around Guerrilla, including a mod that adds the Reconstructor to the singleplayer.
Check it out if you want.
Hopefully Saints Row still has a future.
SR3 was amazing but was missing a lot.
[QUOTE=zeldar;34537647]Crytek's making it apparently.[/QUOTE]
Well they made crysis so maybe they will do it right this time.
[QUOTE=DangerStranger;34537649]But it wasn't a red faction game atall[/QUOTE]
Yes it was, did you play RF1 and 2? They were both linear.
Personally I really enjoyed Armageddon, keep it mind that because a game is linear it is not bad. Guerrilla is not like the other RFs
[QUOTE=legolover122;34537627]They are making a homefront 2?
Didn't the launch fail and everyone hate it? Why make a second?[/QUOTE]
Uh, what ELSE are they going to do? Make a [i]new[/i] game?
[QUOTE=zeldar;34537520]I know this is probably pretty awesome for those who dislike THQ, and while there are valid reasons, personally I'm disappointed.
Because of this Metro Last Light was delayed. :suicide:[/QUOTE]
At least I have more time to get around to metro 2033 before last light comes out.
[QUOTE=Cheshire_cat;34537656]There's a small modding community around Guerrilla, including a mod that adds the Reconstructor to the singleplayer.
Check it out if you want.[/QUOTE] RFG has mods?
I remember searching for mods and it turning up no results.
While they certainly have some shitty games, they also have some really heavy hitters in their lineup. To be doing poorly is fucking disgraceful at this point. How much success can you possibly need to stay afloat.
[QUOTE=A big fat ass;34537447][img]http://upload.wikimedia.org/wikipedia/en/1/13/RFAcover.jpg[/img][/QUOTE]
Armageddon outta here
I hope the Warhammer games are not affected because of this.
[QUOTE=legolover122;34537627]They are making a homefront 2?
Didn't the launch fail and everyone hate it? Why make a second?[/QUOTE]
It was one of the most pre-ordered and successful games THQ has ever published. I think Space Marine might have 1-upped it but it was still enough of a commercial success to warrant a sequel.
[QUOTE=Raidyr;34538363]It was one of the most pre-ordered and successful games THQ has ever published. I think Space Marine might have 1-upped it but it was still enough of a commercial success to warrant a sequel.[/QUOTE]
Though the game got a bad score for story and graphics and gameplay in the campaign I heard the multiplayer was pretty good
First were the rumours that they cancelled their entire 2014 lineup, and now this. It sure looks like shitty times are in for this publisher.
[QUOTE=Matrix374;34538386]Though the game got a bad score for story and graphics and gameplay in the campaign I heard the multiplayer was pretty good[/QUOTE]
A mediocre multiplayer-friendly FPS is not going to hold any weight in a market completely flooded by them.
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