THQ defaults on $50 million credit line

#1 Posted by familyphotoshoot (652 posts) -

http://www.ripten.com/2012/11/10/thq-defaults-on-50-million-line-of-credit/

#2 Edited by wordfalling (193 posts) -

That's no good.

#3 Posted by Cronus42 (274 posts) -

Well shit. First that finance call and now this. I don't know if THQ can pull this one out after all.

#4 Posted by BeachThunder (11652 posts) -

I guess we should have bought more THQ games...

#5 Posted by Nightriff (4871 posts) -

@familyphotoshoot: Write something up about this before it gets closed for just posting a link.

Man this sucks. I just want THQ to survive and it doesn't even look like we are going to get that at this rate. Over the past 6 months I realized that most games I enjoyed a lot where produced by THQ so I really hope they get some stroke of luck and can continue to stand by their core games model.

Online
#6 Posted by shadows_kill (3165 posts) -

Sucks when they are starting to get some sweet games rolling (specifically Saints franchise and Darksiders for those who like that game)! I hope the best for them and I also hope they are able to get things new homes that fit in case it crumbles.

#7 Posted by Phatmac (5720 posts) -

:(

#8 Edited by MattyFTM (14330 posts) -

"EA buys THQ for $1". That's going to be next weeks news, right?

Moderator
#9 Posted by The_Laughing_Man (13629 posts) -
@MattyFTM said:

"EA buys THQ for $1". That's going to be next weeks news, right?

Speaking of EA. My mom said Warfighter got a bunch of seal team people in trouble. Any truth to that? 
#10 Posted by Nightriff (4871 posts) -

@MattyFTM said:

"EA buys THQ for $1". That's going to be next weeks news, right?

If anything I hope it's Square Enix

Online
#11 Posted by Colourful_Hippie (4328 posts) -

I didn't think that would happen that soon. Here's to hoping the next great Saint's Row sequel lives on through another publisher.

#12 Posted by csl316 (7986 posts) -

I just wish more THQ published games had better sequels. Darksiders II and Red Faction: Armageddon didn't play to the strengths of the originals which may have led to poorer sales and reviews. Though folks did like Saints Row 3.

#13 Posted by jakob187 (21642 posts) -

@shadows_kill: Darksiders 2 performed for shit apparently, and Saints Row isn't gonna be out for at least another year. I doubt that Company of Heroes 2 is going to do enough good business to change all this. Metro: Last Light is due out when? Even then, it won't reach the mass audiences it needs to hit in order to make them the money they need to make.

When it comes down to it, THQ makes games that are special and excellently crafted in a world that only gives a fuck about Call of Duty and the next shooter between each Call of Duty game. = /

#14 Posted by CrazedMaverick (214 posts) -

@The_Laughing_Man said:

@MattyFTM said:

"EA buys THQ for $1". That's going to be next weeks news, right?

Speaking of EA. My mom said Warfighter got a bunch of seal team people in trouble. Any truth to that?

http://www.pcmag.com/article2/0,2817,2411931,00.asp

Yep. looks like a handful of them got in trouble for consulting/showing stuff off.

#15 Posted by BigDaddy81 (317 posts) -

@MattyFTM said:

"EA buys THQ for $1". That's going to be next weeks news, right?

I think I prefer Patrick's idea of them getting bought out by Square-Enix instead.

#16 Posted by The_Laughing_Man (13629 posts) -
@CrazedMaverick said:

@The_Laughing_Man said:

@MattyFTM said:

"EA buys THQ for $1". That's going to be next weeks news, right?

Speaking of EA. My mom said Warfighter got a bunch of seal team people in trouble. Any truth to that?

http://www.pcmag.com/article2/0,2817,2411931,00.asp

Yep. looks like a handful of them got in trouble for consulting/showing stuff off.

My mom said they can no longer be promoted. No pay. Cant work lots of stuff like that. 
#17 Posted by Icicle7x3 (1169 posts) -
#18 Posted by Gonmog (580 posts) -

@jakob187 said:

@shadows_kill: Darksiders 2 performed for shit apparently, and Saints Row isn't gonna be out for at least another year. I doubt that Company of Heroes 2 is going to do enough good business to change all this. Metro: Last Light is due out when? Even then, it won't reach the mass audiences it needs to hit in order to make them the money they need to make.

When it comes down to it, THQ makes games that are special and excellently crafted in a world that only gives a fuck about Call of Duty and the next shooter between each Call of Duty game. = /

I'd say that was true, if not for the fact that Dishonerd and Xcom did so well.

#19 Posted by Jazzycola (662 posts) -

@Gonmog said:

@jakob187 said:

@shadows_kill: Darksiders 2 performed for shit apparently, and Saints Row isn't gonna be out for at least another year. I doubt that Company of Heroes 2 is going to do enough good business to change all this. Metro: Last Light is due out when? Even then, it won't reach the mass audiences it needs to hit in order to make them the money they need to make.

When it comes down to it, THQ makes games that are special and excellently crafted in a world that only gives a fuck about Call of Duty and the next shooter between each Call of Duty game. = /

I'd say that was true, if not for the fact that Dishonerd and Xcom did so well.

Except xcom didn't sell very well.

#20 Posted by MattyFTM (14330 posts) -

@rebgav said:

@MattyFTM said:

"EA buys THQ for $1". That's going to be next weeks news, right?

Hell no, EA isn't going to buy into THQ's debts.

I really hope that THQ are shopping their dev studios around, it's going to be crushing if they cancel the games and start laying people off.

I don't know quite how much THQ's debts are, but THQ has IP that would be extremely valuable to EA. Saints Row alone would be an extremely valuable asset to them. They don't have a GTA-style franchise. They would be buying into an established, well liked franchise unlike anything EA currently make. Add onto that a selection of other IP's, EA could make a bunch of money from THQ franchises.

Of course, it all depends on the size of THQ's debts as to whether or not that's worth their while, but there is a bunch of value in THQ.

Moderator
#21 Posted by Kidavenger (3488 posts) -

Anyone have a link from a legitimate news source?

#22 Edited by Fredchuckdave (5190 posts) -

@Nightriff: Not a bad idea, Square Enix is certainly much better than Activision and EA (though I don't really have that much of a gripe with EA all things considered, monolithic corporation sure but they have made and financed plenty of decent series and not just ran them into the ground).

@Jazzycola: Stunning that a Tactical RPG based on a game that's 20 years old did poorly

#23 Posted by Nightriff (4871 posts) -

@Fredchuckdave: I don't want to take credit for it, Patrick brought it up on the last Bombcast. I just don't want to see these franchises in the hands of a EA or Activision.

Online
#24 Edited by Seppli (10251 posts) -

@rebgav said:

@MattyFTM said:

@rebgav said:

@MattyFTM said:

"EA buys THQ for $1". That's going to be next weeks news, right?

Hell no, EA isn't going to buy into THQ's debts.

I really hope that THQ are shopping their dev studios around, it's going to be crushing if they cancel the games and start laying people off.

I don't know quite how much THQ's debts are, but THQ has IP that would be extremely valuable to EA. Saints Row alone would be an extremely valuable asset to them. They don't have a GTA-style franchise. They would be buying into an established, well liked franchise unlike anything EA currently make. Add onto that a selection of other IP's, EA could make a bunch of money from THQ franchises.

Of course, it all depends on the size of THQ's debts as to whether or not that's worth their while, but there is a bunch of value in THQ.

Any value which THQ's IPs have will not be changed by THQ going out of business. There is no reason for EA to negotiate with a desperate, dying company when they could simply wait for it to bleed out and then rob the corpse.

If you wait too long to throw a lifeline, the talent jumps ship, and all the already established and well-oiled production pipelines are lost forever. You are talking about EA buying Saints Row 'the IP', not about EA buying Volition 'the Saint's Row maker' - I don't think getting one without the other does pay dividends. Making open world games is both expensive and difficult.

Sad news about THQ. Hopefully Relic, Vigil and Volition survive this ordeal, and keep making amazing games. Hell - Relic is absolute upper crust talent, as far as I'm concerned - on par with the Blizzards of the world.

#25 Posted by Jazzycola (662 posts) -

@MattyFTM said:

@rebgav said:

@MattyFTM said:

"EA buys THQ for $1". That's going to be next weeks news, right?

Hell no, EA isn't going to buy into THQ's debts.

I really hope that THQ are shopping their dev studios around, it's going to be crushing if they cancel the games and start laying people off.

I don't know quite how much THQ's debts are, but THQ has IP that would be extremely valuable to EA. Saints Row alone would be an extremely valuable asset to them. They don't have a GTA-style franchise. They would be buying into an established, well liked franchise unlike anything EA currently make. Add onto that a selection of other IP's, EA could make a bunch of money from THQ franchises.

Of course, it all depends on the size of THQ's debts as to whether or not that's worth their while, but there is a bunch of value in THQ.

Isn't EA in its own hole at the moment? Do they even have the capital to even be able to buy out THQs properties? EA has tried to make games like the ones THQ makes and they haven't paid off for them. In other words, I highly doubt EA would be interested. Considering Vivendi is looking to sell their gaming division(if rumors are true) then that means they aren't in the market. Even if Activision weren't up for sale they don't buy studios unless they make billions of dollars in revenue.

#26 Posted by EXTomar (4457 posts) -

The likely hood someone swoops in and grabs THQ rises higher and higher.

#27 Posted by RE_Player1 (7545 posts) -

I'll throw my hat into the Square Enix buying THQ after listening to the Bombcast. I wouldn't want EA or Activision to be in control of Saints Row.

#28 Posted by Demoskinos (14524 posts) -

Well I hate to see jobs lost (not that THQ going under is official yet but... ya know the end is nigh) but I really hope Saints Row makes it through this and it will also be very interesting to see what becomes of the WWE licence.

#29 Posted by CptBedlam (4449 posts) -

@The_Laughing_Man said:

@CrazedMaverick said:

@The_Laughing_Man said:

@MattyFTM said:

"EA buys THQ for $1". That's going to be next weeks news, right?

Speaking of EA. My mom said Warfighter got a bunch of seal team people in trouble. Any truth to that?

http://www.pcmag.com/article2/0,2817,2411931,00.asp

Yep. looks like a handful of them got in trouble for consulting/showing stuff off.

My mom said they can no longer be promoted. No pay. Cant work lots of stuff like that.

Can I have the number of your mom? She seems to be a pretty cool guy. What does your mom say?

#30 Posted by The_Laughing_Man (13629 posts) -
@CptBedlam said:

@The_Laughing_Man said:

@CrazedMaverick said:

@The_Laughing_Man said:

@MattyFTM said:

"EA buys THQ for $1". That's going to be next weeks news, right?

Speaking of EA. My mom said Warfighter got a bunch of seal team people in trouble. Any truth to that?

http://www.pcmag.com/article2/0,2817,2411931,00.asp

Yep. looks like a handful of them got in trouble for consulting/showing stuff off.

My mom said they can no longer be promoted. No pay. Cant work lots of stuff like that.

Can I have the number of your mom? She seems to be a pretty cool guy. What does your mom say?

Its more of that im amazed shes aware of a video game fact and stuff behind it. Not the " my mom said" and she is right That" My mom said" Holy crap why does she know about video games. 
#31 Edited by Sooty (8082 posts) -

I'm sure Patrick will be glad given the amount of times he has had to let us know he didn't like Darksiders 2.

#32 Posted by Cameron (595 posts) -

@Jazzycola: That just shows that it didn't sell very well on consoles, which is no surprise for a PC focused sequel to a PC classic. It has been one of the best selling games on Steam since release. Not saying that it was a runaway hit or anything, just that the NPD numbers are a little deceptive.

#33 Posted by CptBedlam (4449 posts) -

@The_Laughing_Man said:

@CptBedlam said:

@The_Laughing_Man said:

@CrazedMaverick said:

@The_Laughing_Man said:

@MattyFTM said:

"EA buys THQ for $1". That's going to be next weeks news, right?

Speaking of EA. My mom said Warfighter got a bunch of seal team people in trouble. Any truth to that?

http://www.pcmag.com/article2/0,2817,2411931,00.asp

Yep. looks like a handful of them got in trouble for consulting/showing stuff off.

My mom said they can no longer be promoted. No pay. Cant work lots of stuff like that.

Can I have the number of your mom? She seems to be a pretty cool guy. What does your mom say?

Its more of that im amazed shes aware of a video game fact and stuff behind it. Not the " my mom said" and she is right That" My mom said" Holy crap why does she know about video games.

So, can i have her number?

;)

#34 Posted by The_Laughing_Man (13629 posts) -
@CptBedlam said:

@The_Laughing_Man said:

@CptBedlam said:

@The_Laughing_Man said:

@CrazedMaverick said:

@The_Laughing_Man said:

@MattyFTM said:

"EA buys THQ for $1". That's going to be next weeks news, right?

Speaking of EA. My mom said Warfighter got a bunch of seal team people in trouble. Any truth to that?

http://www.pcmag.com/article2/0,2817,2411931,00.asp

Yep. looks like a handful of them got in trouble for consulting/showing stuff off.

My mom said they can no longer be promoted. No pay. Cant work lots of stuff like that.

Can I have the number of your mom? She seems to be a pretty cool guy. What does your mom say?

Its more of that im amazed shes aware of a video game fact and stuff behind it. Not the " my mom said" and she is right That" My mom said" Holy crap why does she know about video games.

So, can i have her number?

;)

No...
#35 Posted by WilliamHenry (1200 posts) -

@Sooty said:

I'm sure Patrick will be glad given the amount of times he has had to let us know he didn't like Darksiders 2.

Can't tell if you're sarcastic or not, but just because he disliked a game does not mean he wants an entire company to go out of business.

#36 Edited by Brodehouse (9525 posts) -

Yeah, it won't be EA. EA is more likely to buy independents than they are to absorb other publishers. When EA does open the chequebook in those major ways, they buy successful publishers (look at their stake in Take-Two). EA likes to buy independents, Take-Two likes to start their own studios (and have been consolidating in both 2K and Rockstar). Despite their legendary status among gamers, Capcom is a relatively cash-poor publisher, and Konami probably doesn't even realize anything is happening they're so poorly ran.

Patrick has said Square Enix and that's a good pick. They've been cash rich since the Enix merger, and they're making a big push into Western stuff. Taking THQ's studios would give them a better American presence, and having Patrice's Montreal studio could work out for them by consolidating with Eidos Montreal.

Let me push this one across your desk, no one has brought it up; Bethesda. Which is to say, Zenimax. Zenimax are rich as fuck, and they've been trying to do this major pub thing for three years now. The main issue that they've began to solve is a lack of in-house development; but now they have BGS, id, Arkane and Shinji Mikami's Tango Gameworks. They have a history of acquiring IP from failing publishers and using it, and they have money out the ass. I put even money behind Bethesda.

#37 Posted by Sooty (8082 posts) -

@WilliamHenry said:

@Sooty said:

I'm sure Patrick will be glad given the amount of times he has had to let us know he didn't like Darksiders 2.

Can't tell if you're sarcastic or not, but just because he disliked a game does not mean he wants an entire company to go out of business.

Yeah I know, just a little jab.

#38 Posted by OneManX (1676 posts) -

I think Square is th best shot at THQ getting bought. And more than likely someone else will get the WWE IP, I had thoughts it was gonna be EA, but not so much now.

#39 Posted by Hunter5024 (5515 posts) -

This news makes me feel terrible, because I feel like it was people like me who killed THQ. I was interested in Saints Row 2, Red Faction: Guerilla, Darksiders, Darksiders 2, and that Warhammer game, but I didn't buy a single one of them. I always figured I'd buy em used or rent them in 6 months time and then I never even got around to that much.

#40 Edited by thedj93 (1237 posts) -

thats a big huge bummer

fuckin udraw FUCK

#41 Posted by mordukai (7129 posts) -

@MattyFTM said:

"EA buys THQ for $1". That's going to be next weeks news, right?

I have a feeling that not one company will end up with their assets.

#42 Posted by insane_shadowblade85 (1382 posts) -

@The_Laughing_Man said:

@CrazedMaverick said:

@The_Laughing_Man said:

@MattyFTM said:

"EA buys THQ for $1". That's going to be next weeks news, right?

Speaking of EA. My mom said Warfighter got a bunch of seal team people in trouble. Any truth to that?

http://www.pcmag.com/article2/0,2817,2411931,00.asp

Yep. looks like a handful of them got in trouble for consulting/showing stuff off.

My mom said they can no longer be promoted. No pay. Cant work lots of stuff like that.

Yep. The bad part about not being promoted is that when you retire you won't get as much money when you retire. If I remember correctly, the higher your rank the more money you'll get when you retire.

#43 Posted by JasonR86 (9587 posts) -

@BeachThunder said:

I guess we should have bought more THQ games...

My guess is that they were fucked regardless. Banking a company on the release of a single game so that they can bank their stake in another game is a really shitty business model.

#44 Posted by BisonHero (6055 posts) -

@Jazzycola said:

@Gonmog said:

@jakob187 said:

@shadows_kill: Darksiders 2 performed for shit apparently, and Saints Row isn't gonna be out for at least another year. I doubt that Company of Heroes 2 is going to do enough good business to change all this. Metro: Last Light is due out when? Even then, it won't reach the mass audiences it needs to hit in order to make them the money they need to make.

When it comes down to it, THQ makes games that are special and excellently crafted in a world that only gives a fuck about Call of Duty and the next shooter between each Call of Duty game. = /

I'd say that was true, if not for the fact that Dishonerd and Xcom did so well.

Except xcom didn't sell very well.

That saddens me, yet is 100% not surprising at all. In the week of XCOM's launch, when talking to all of my console gaming friends/coworkers who don't read gaming news, at that point in time they were either A) already getting hyped for Halo 4, or B) had heard of Dishonored and were thinking of checking that out.

I know they tried to market the fuck out of XCOM, but c'mon, it's a more obscure series than Civilization, and the XCOM series hasn't even really been active in like a decade, so it's not that surprising that it would sell worse than Civilization Revolution. Console-only gamers of today are more likely than ever to be ignorant of older series, especially ones that were PC only, so they had a hell of an uphill battle.

Well, good thing Firaxis spent all that time making a UI and control scheme that felt more natural with a controller than with keyboard & mouse- oh wait 90% of your sales were on PC and it's still selling well on Steam. Sometimes no matter how hard you chase that console gamer dollar, they're an inattentive lot that just isn't going to care about your game because it isn't a first-person shooter.

#45 Posted by Nals (74 posts) -

@BisonHero:

It sold fine, that doesn't count Digital sales.

Current market data is pointing to PC outselling Ps3 these days on console games, and catching up with 360 sales. All that article says is that the console versions of a PC centric game sold poorly, which is a bit of a "no shit sherlock" style thing.

#46 Posted by JerichoBlyth (1044 posts) -

No more 'I love Monday's' using the Story Editor in WWE games!?!?

This edit will also create new pages on Giant Bomb for:

Beware, you are proposing to add brand new pages to the wiki along with your edits. Make sure this is what you intended. This will likely increase the time it takes for your changes to go live.

Comment and Save

Until you earn 1000 points all your submissions need to be vetted by other Giant Bomb users. This process takes no more than a few hours and we'll send you an email once approved.