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Forums - Sales Discussion - VGStockz: General Questions

CChaos on 07 November 2012
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.



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sales2099 on 07 November 2012

MS should buy them for their IPs



Xbox: Best hardware, Game Pass best value, best BC, more 1st party genres and multiplayer titles. 

 

zarx on 07 November 2012
kumagawa said:
noname2200 said:
Soleron said:

I'd agree, but $10m is INSANELY CHEAP SERIOUSLY. It's crazy low.

If this persists, some capital company will buy THQ just to auction off the assets. They can't let that happen as it would break up the teams that worked on the valuable projects they have left. Really surprised this hasn't been done already at that price.

You're not just buying a company for $10 million, though, you're buying a company and its debts for that price. Heavens knows how deep underwater THQ is right about now.

Ail said:
The most worrying thing is when a delayed South Park title is supposed to be the title that will save your company........


No, Darksiders II was supposed to be that title. South Park is just the last thing they have left, outside of Saint's Row 3 DLC.


THQ has zero debt and $36 million in on hand cash (up from $20 million at the end of the 2nd quarter but that is because of the sale of the UFC licence to EA) according to there 3rd quarter report. It's only because of lack of short term confidence that there market cap has crashed (it's $7 million as of this post) which is not surprising with no high profile games for release in either the holiday period or 1st quarter of next year.

They have $36m on hand but that is borrowed, they have $100m in convertable debt that has to be payed by 2014, unless they can open a new line of credit they are screwed. They are up shit creek and no one is going to buy them because they would rather pick up the assets in the fire sale after they go bankrupt wiping the debt. 

http://www.bloomberg.com/news/2012-11-06/thq-hires-centerview-to-review-options-seeks-new-capital.html



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zarx on 07 November 2012
happydolphin said:
What kind of sick break-even target is 2m sales for a Darksiders? No wonder they're dying.


That is arround average for a AAA game today, in fact it's a bit below average for todays AAA. 



@TheVoxelman on twitter

Check out my hype threads: Cyberpunk, and The Witcher 3!

osed125 on 07 November 2012

I really like the Darksiders franchise, I don't want it to die :(

Hope someone buys their IPs. I really don't care who it is I just want to see a Darksiders 3!



Nintendo and PC gamer

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noname2200 on 07 November 2012
zarx said:

They have $36m on hand but that is borrowed, they have $100m in convertable debt that has to be payed by 2014, unless they can open a new line of credit they are screwed. They are up shit creek and no one is going to buy them because they would rather pick up the assets in the fire sale after they go bankrupt wiping the debt. 

http://www.bloomberg.com/news/2012-11-06/thq-hires-centerview-to-review-options-seeks-new-capital.html

That sounds closer to what I expected.



Heavenly_King on 08 November 2012
sales2099 said:
MS should buy them for their IPs

Yeah, just like they did with RARE.. .oh wait...nvm.



Open World-Survival-Game Days Gone

sales2099 on 08 November 2012
Heavenly_King said:
sales2099 said:
MS should buy them for their IPs

Yeah, just like they did with RARE.. .oh wait...nvm.

Times change. You must have missed the Rare rumermill going around.



Xbox: Best hardware, Game Pass best value, best BC, more 1st party genres and multiplayer titles. 

 

Heavenly_King on 08 November 2012
osed125 said:

I really like the Darksiders franchise, I don't want it to die :(

Hope someone buys their IPs. I really don't care who it is I just want to see a Darksiders 3!

I think that Sony can afford to buy the whole THQ (I know Sony also has problems, but for them 11M is very little cash),  or at least I see them picking up the Darksiders Franchise and give it to SSM.

I would prefer THQ to stay alive though, because no one would buy Dawn of War and Companiy of Heroes IPs. Although, maybe Sega could buy those, considering they already have a strategy game studio.



Open World-Survival-Game Days Gone

Pemalite on 08 November 2012

THQ isn't allowed to fail, not until I get my stinking Homeworld 3!



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