VGStockz: General Questions

[CChaos]

TeddostheFireKing said:

Soleron said:

TeddostheFireKing said:

I don't particularly follow economics that much, but can someone explain to me what THQ can actually do at this point to stay alive?

A company stays alive as long as it has enough cash on hand to pay its workers, day-to-day expenses and interest on loans. That's the only thing it needs, so if it can acquire that cash through credit or selling off assets or from its products over Christmas that's good enough.

Surely they can't sell of assets forever? Those are only short term solutions :S

Is there any long term one?

The only long term method that a company has for staying in business is to just find products that people want to buy. However, it is also important that the company be able to have the resources to follow through on the creation, marketing, etc, of said products to ensure they are successful. In the Darksiders 2 case, 2 million was a break even point and was obviously too high (especially since Darksiders 1 didn't come real close to 2m, though VGC doesn't have the PS3 numbers).

It's kind of a method of economic evolution. Those who cannot shift with the market tend to wither. THQ needs to find something that will set the world afire and then they can bounce back. If they don't, bankruptcy, sale, etc, are all possibilities.