View Full Version : Analyst - THQ Have 50/50 Chance of Bankruptcy

03-01-2009, 06:45 AM

A Denver based analyst has put the odds off videogame publisher THQ going bankrupt at 50/50. He believes that dwindling sales and weakening core brands will be to blame should the company hit rock bottom. The company recently released 50 Cent: Blood on the Sand and Warhammer: Dawn of War II.

“You have mediocre product and you’re running out of cash,” said Michael Hickey, an analyst with Janco Partners Inc. in Denver, who put the odds of THQ going bankrupt at 50-50. “Not the situation they want to be in right now.”

THQ executives are scrambling. Chief Executive Brian Farrell last month launched an aggressive turnaround plan, slashing costs for next year by $220 million and laying off almost 600 employees.

Farrell dismissed talk of takeovers and bankruptcy as gossip.

“I know that makes for good print and sells newspapers, but those aren’t the kind of things we focus on right now,” Farrell told the Business Journal. “When the stock price is depressed, the naysayers can have their day in the sunshine. But we have a plan that we’re very confident will give us cash and return the company to profitability.”

Hopefully Mr. Farrell is right. You can read more analysis at the LA Business Journal. (http://www.labusinessjournal.com/article.asp?aID=29426966.7104656.1750892.1954275.5 632346.429&aID2=134675)

But I want more 50 Cent!

03-01-2009, 07:30 AM
You know, a few weeks back this kind of "bad" news surfaced for THQ. Back then I stated that it seemed the appropriate course of action for THQ. They are not a solid company. They do not release solid titles and they seemingly lose out on a lot of bigger opportunities.

The whole industry is in flux right now. With every big publisher slashing positions left and right. The industry is moving towards smaller publishers with more independent studios JUST like it did back in 2000-2002. This is the only way to infuse creativity back into the system.

Sorry to hear the bad news about THQ, but I don't expect them to be the same company that they are currently for the next 12-18 months. They need to reinvent their brand and position and develop better titles -or- the will get bowled over by the competition.

03-01-2009, 07:48 AM
I think gameing companies need to stop banking on multi million selling games the first few weeks. Its like all the other industries its all about first week sales anymore.

Here lets look at some of the brands thq is putting out right now:
DOW just came out
COH is getting a new expansion
Red faction is coming out soon
Sr2 is out and did well but not great ( i enjoyed it more than GTA4 thats for sure)
they have one wwe game out and another coming these usually sell a quite a few copies
they have the UFC game coming soon which can be either a bust or a boon since their hasnt been a ufc game since dreamcast thats been good
and they have 50s game which is scoreing 7-8s across the board

03-01-2009, 08:04 AM
I still think thq would be a good takeover target even if their portfolio is heavily based on licenses. Dawn of War could be huge, de blob may break 1 mil- which is deserved but pretty surprising. And Deadly Creatures is a solid game that could be another strong ip.

03-01-2009, 11:34 AM
Why do analyst predictions ever get posted?

"THQ might go out of business. Also, might not go out of business."

What kind of fucking prediction is that?

Chaos Machine
03-01-2009, 01:22 PM
dow 2 is selling well, and im sure anything with 50cents name on it is going to sell like hotcakes. Their product lineup looks pretty solid. I dont see them going out of business in the immediate future.

03-01-2009, 01:58 PM
Who's got the coin? FLIP IT already! :D