Why did THQ go bankrupt?

[wizardofwor1975]

Lately, I've been wondering what is the main reason a juggernaut like THQ could go bankrupt.

http://www.polygon.com/2014/5/28/5757798/thq-abandoned-office-pictures

I mean how could a game developer that put out games like Company of Heroes, Warhammer 40K, and Red Faction go bankrupt? Its not like THQ didn't make incredibly savvy moves like acquiring Relic Entertainment.

http://www.cracked.com/blog/6-reasons-great-game-developer-just-went-bankrupt/

I'm sure their are many logical reasons but what in your opinion is the main reason for the downfall of THQ? Hopefully with Sega purchasing Relic the Company of Heroes franchise will get a 3rd installment.

http://www.seganerds.com/2013/04/23/relic-open-to-new-warhammer-title-if-games-workshop-allows-it/

[Tanooki]

My brother worked for them through Volition before where he is now and was a victim of THQs layers of final years of failure before going bankrupt. They basically are one of those studios, me, maybe you, the media, and other speculators pick on, they're a poster child of bad business decisions. They would throw a crap load of money into a franchise like wrestling and mma and along with that other franchises as well, massive sums of money for coding, design, hollywood voice acting and so on. They were like how SquareEnix was with Tomb Raider selling 4M units being a 'financial failure.' Except they didn't have as many good properties or rated games upon release to cover the expenses going out the door to make stuff and what came in wasn't covering it. They started having to sell off or license IPs, close studios, do large scale managed layoffs. Eventually what really broke them was their HOMEFRONT game, the wannabe video game version of Red Dawn (the modern one with the North Koreans instead of the USSR+Cubans in the 80s movie.) They hired this huge hollywood writer and director (forget name) who wanted millions for the project (so that was the big debt up front) then the project went over if I recall taking longer than projected (more loss) and then when it came out despite the awesome writing the 1P mode was so short it made a call of duty pity campaign to sell multiplayer look long, and then the MP game was substandard with a boring layout, bugs and design problems and ultimately sold shitty. They already were floating loans, and then this one broke them so hard they couldn't keep the doors open or pay off the loans (interest) they had and filed for bankruptcy. That game put my brother into the unemployment line until he ended up at his current place the last few years and forced a move from IL to OR. Not long after that one bombing and the banks/investors wanted their money they filed, failed to move through it, so they were forced to close up and sell off all IPs to anyone who would win them under a court ordered clearing(auction) which is why stuff like Darksiders is still out there, Homefront has a sequel from another party, etc.

That's what I can remember, it's vague but good enough I hope since I don't remember or probably know more than that anyway. THQ basically was mismanaged, bleeding money and had it coming for trying to be bigger than they really were. When they shut down, even the buildings they owned they had to sell off if you've seen that story online with pictures of their old office with lighting, kiosks, displays, signs, trophies, resin mascots, walls of sealed games with little plaques with names/dates on them, etc down to the generic tables and plastic office chairs.

[Jorpho]

I'm not sure why this is in Computer Gaming.

I had the impression that the abject failure of the uDraw tablet sure didn't help them at all.

[wizardofwor1975]

I'm not sure why this is in Computer Gaming.

I had the impression that the abject failure of the uDraw tablet sure didn't help them at all.


So it's your opinion that the udraw tablet was the main reason and/or culprit for the downfall of THQ? Another major question on the minds of PC gamers is whether or not SEGA will release another Company of Heroes for the PC after purchasing Relic from THQ? I know I wouldn't mind seeing Company of Heroes 3. Also what's your take on the chances that the Game's Workshop will green light Relic to make Dawn of War 3. Many avid computer computer gamers including myself have our fingers crossed that SEGA will continue to expand their presence in the PC game market and make DOW 3 a reality. As far as the venue is concerned I think THQ's bankruptcy could work in either modern gaming or computer gaming.

[ProjectCamaro]

Thanks for sharing this here. I hope many people will learn from what happened to this company. The bankruptcy of THQ was a loss to many people, including me. I used to play their games the whole day. I find them very amusing. Unfortunately, they weren't able to escape bankruptcy. There's really no escape for this. Sadly, it's normal for so many to be called these days. While the miracle of celeb may increase the status related to certain people, this does not mean that everything celebrities touch turns to gold. They also have experienced being bankrupt like all of us. Here are some bad celebrity investments that may make you feel better at night.

Spambot much?

[megasdkirby]

It's surprising they lasted this much. I always hated their shitty NES games. I thought they were much worse than LJN and should have gone the way of the dodo a long time ago.

[Tanooki]

Well like I said bad management finally did them in making some really dumb decisions, then even dumber ones on top that did anything but help the problem.

[Daria]

Spambot much?


Wow that Spambot was surprising legible. Almost seemed like a real (albeit somewhat retarded) post until they mentioned "celebs"

[T2KFreeker]

I had the impression that the abject failure of the uDraw tablet sure didn't help them at all.


This is the actual reason THQ went down. Homefront may have been the final straw that broke the Camels Back, but the uDraw Tablet is what did them in. They lost so much Money on the uDraw itself due to over manufacturing of the units and nobody bought them that there was no hope of bailing out the company short of a miracle. It left THQ in the red, just this one thing. Pile on another lackluster Red Faction game right after the release and it just got deeper and deeper. Very sad actually.

[Tanooki]

You're right the tablet didn't help, nor did that broken excuse for a Red Faction sequel that stunk. Homefront is what did it, they paid that hollywood writer/director who made the story for it into the 10+Million level for his so called talent and they went down in flames when it sold poorly since it got bad marks for multiplayer and for the single player while being excellent was short so people avoided it. When you combine that junk with the fact they had loans out to pay for loans and defaulted on all of it, they were finished.