THQ have clearly been suffering with problems lately and many have speculated on how much money they actually have in their bank. Their shareholders are running for cover and their stock prices have sunk lower and lower lately. In fact the rumour mill has subsequently kick into gear about how long the company has left.
They have of course jumped into defence mode but saying that they have not cancelled their games and are not going bust... I’m certainly hoping this is right and I’ll tell you why.
THQ are a different sort of publisher to the likes of EA and Activision, their actions over the last few years have shown that they are willing to compete with new ideas and innovations. Whereas Activision have a massive back list of games to schedule sequels for the THQ base is much smaller and therefore they have to look towards new IP’s to make any money.
There has been a time when gamers didn’t really look at THQ with much enthusiasm; most of their products consisted of mediocre WWE simulators or the usual TV tie in. Fans of the specific shows became fans of the products and were happy to be able to Rock Bottom friends even if the gameplay was stiff. Fortunately it’s these loyal fans that have kept THQ plugging along.
For now THQ aren’t going anywhere which is great news for us as gamers and obviously for them as a company. They actually had a solid December for sales and are probably one of the top five publishers in the U.S. They produced some great games in 2011 in the form of Homefront and Saint’s Row: The Third, and also have some big releases on the cards for 2012 too in the form of Metro: Last Light and Darksiders 2. They have also got their new IP’s Brave and South Park scheduled for release too over the next 12 months but I’m not familiar with either.
As I stated early THQ have a different ethic to a lot of their competitors, their lack of licenses have forced them to come up with an entirely new selection of original games with fresh ideas. With their TV license businesses drying up THQ have taken action as they’ve seen that a big percentage of their own cash is being given to the license holders ever time a sale takes place - even if the game is unsuccessful itself.
The big companies have loads of old IP’s that they can resurrect at any time and this is where they will find their feet in this poor economic climate. Old fans of different series will evidently purchase the recreated products and it’s common to persuade someone to buy something they love over something they are unfamiliar with.
Unfortunately that also means that THQ have to spend lots on marketing ahead of releasing a new IP and ultimately that reduces their profit margins and increases their chances of failure. Homefront maybe wasn’t the best FPS ever but the marketing pushed their sale pass the profitable line. It’s difficult to birth a killer franchise straight away – not many new IP’s hit with sales like Halo, Call of Duty or Fifa.
THQ have brought in new studio talent to reinvent their previously failing formula and taken the necessary steps to reinvent themselves. This is always a painful experience for any company especially for those who lost their jobs in various shake ups but hopefully THQ will come out the other side stronger.
Quite frankly losing a publisher like THQ will only put more power in the hands of companies that don’t want to take risks and settle for tried and tested formulas ahead of new ideas. THQ might not be the creative power of Valve but their failure would make companies even more reluctant to put new ideas on the table.
Good Luck THQ!
Kind regards,
Your Video Game Blog
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