PC & Video Games

THQ files for bankruptcy

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  • Dec 29th, 2012 1:43 pm
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Deal Guru
Feb 11, 2007
11822 posts
5908 upvotes

THQ files for bankruptcy

It looks like they'll still be able to finish their current projects (Metro Last Light, Southpark RPG) but it probably means the end of Saints Row, Darksiders, and the Sports licenses they hold (UFC, WWE) unless someone else decides to pick those studios up.

http://ca.ign.com/articles/2012/12/19/t ... e853000060
31 replies
Deal Expert
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Oct 9, 2003
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What all happened here? They had lots of good/great games. What were the ones that really pulled them down? I understand that Darksiders 2 didnt do nearly as well as expected but that one game didnt do this.
Deal Addict
Oct 13, 2005
1614 posts
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Montr
Hm, I wonder what debt they are trying to get rid off.
Deal Guru
Feb 11, 2007
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Most projects take at least 3-5 years of development time and companies have to buy computers that cost several thousands of dollars each to keep up with Next-gen technology. The big companies like EA, Activision, Ubisoft, Konami, Capcom, etc are able to upgrade their workstations and have cash flow coming in from guaranteed sales.

That is why Nintendo is so profitable on their software. Their games did not require cutting edge technology for 3DS and Wii development.
princesstwinkly wrote: Very few video game companies are making money right now.
Sr. Member
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Jul 28, 2009
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More companies are going to go down if the development cost keeps on increasing with each generation. PS4/NextBox better not be some super computers again despite what kids on the internet want them to be.

As for what games really hurt THQ. Bit of everything but Homefront was big offender. When they lose money even after selling 2 million copies. I don't know what they could possibly do. Nintendo seems one sane option for publishers/developers and keep on making games for 360/PS3 even after next gen consoles come out.
Deal Addict
Nov 29, 2009
2968 posts
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Got this from reddit hopefully clears things up. Seems projects near completion (Saints Row) will be released but those further in the works could have a question mark around it.

[QUOTE]A lot of you are misunderstanding what THQ is doing. Chapter 11 is part of the US bankruptcy code, yes, but it doesn't mean THQ is filing FOR bankruptcy. Chapter 11 is Bankruptcy Protection, which essentially prevents creditors from forcing them to go bankrupt while they finalize the details of the sale to Clearlake.
THQ isn't going anywhere and, in fact, it's quite the opposite. This is great news for gamers and fans of the THQ franchises.
Edit: The sale is for THQ as a whole. No individual studios are going to get closed and sold off to other companies any time soon, if ever. All of the titles that are shipping in 2013 are still going to be shipped. Studio production is not affected by this, but will actually get a much needed influx of operating cash (once the sale is final, in about a month).[/QUOTE]
Deal Expert
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Jun 12, 2003
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Markham
princesstwinkly wrote: Very few video game companies are making money right now.
good... because it's the same crap over and over again... nothing radical
ShadowVlican
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Jul 19, 2012
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green_sky wrote: More companies are going to go down if the development cost keeps on increasing with each generation. PS4/NextBox better not be some super computers again despite what kids on the internet want them to be.
that's why many believe this generation will be the last one for the masses and it will all just peter out after that. development costs are insane now and it's like the us where 10% of the games make 90% of the revenue. if sony and microsoft make it even more expensive all we'll see is properties like cod, halo, gow/geow, uncharted, gta and the various ea sports games.
Deal Fanatic
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Jul 20, 2004
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I hope they at least are able to finish Saints Row 4, or offload it to another developer.

It's time the WWE games get shifted to another company. I'd like to see what a 2K Sports does with it.
vero95 wrote: LOL what does project management have to do with project being over budget?
vero95 wrote: $5c for a plastic bag >= $30 for a jug of milk
Deal Guru
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Mar 12, 2005
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Victoria
JackWhyte wrote: that's why many believe this generation will be the last one for the masses and it will all just peter out after that. development costs are insane now and it's like the us where 10% of the games make 90% of the revenue. if sony and microsoft make it even more expensive all we'll see is properties like cod, halo, gow/geow, uncharted, gta and the various ea sports games.
To be fair the last gen has lasted 7 years so far with at least one more. That's the longest gap between gens that I remember. You would think costs would of come down during that time. The 360's/Ps3's are starting to show their age (they feel old).

I don't think video games will dye out. The demographic continues to expand. IE my theory is that oldest generation that finds video games acceptable is the atari/nintendo/coleco generation. The kids of the 80s. They still play video games. It's that age where if you're 40 or under you probably grew up with exposure to video games. People older just missed. People keep playing video games. In 50 years from now you'll probably have old people playing video games because it was normal to do so (the children of the 80s). So the industry still has 50 years left of older non video game generations passing away, and new video game orientated kids being born. The demographic will keep growing for years.
Deal Guru
Feb 11, 2007
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The average age of a video game player is 37 now according to reports and getting older
That is a big change from the NES/SNES days.

http://www.g4tv.com/thefeed/blog/post/7 ... rs-female/

The Video Game industry has generated more money than the Hollywood Movies and films industry for the last half decade but the main benefactor are the big established companies such as Activision.


zod wrote: To be fair the last gen has lasted 7 years so far with at least one more. That's the longest gap between gens that I remember. You would think costs would of come down during that time. The 360's/Ps3's are starting to show their age (they feel old).

I don't think video games will dye out. The demographic continues to expand. IE my theory is that oldest generation that finds video games acceptable is the atari/nintendo/coleco generation. The kids of the 80s. They still play video games. It's that age where if you're 40 or under you probably grew up with exposure to video games. People older just missed. People keep playing video games. In 50 years from now you'll probably have old people playing video games because it was normal to do so (the children of the 80s). So the industry still has 50 years left of older non video game generations passing away, and new video game orientated kids being born. The demographic will keep growing for years.
Deal Guru
Jul 19, 2012
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zod wrote: I don't think video games will dye out. The demographic continues to expand.
who was talking about video gaming? that will never die and with platforms like ipods and tablets it may be stronger than ever.

I am talking about expensive home consoles pimping games with hundred million dollar budgets. that's what's going to die out fast and I wonder if it will even take the next generation to do it. when a couple of guys in their basement can make a few million dollars with a hit ios game, that tells me where the future is.
Deal Addict
Oct 13, 2005
1614 posts
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Montr
JackWhyte wrote: who was talking about video gaming? that will never die and with platforms like ipods and tablets it may be stronger than ever.

I am talking about expensive home consoles pimping games with hundred million dollar budgets. that's what's going to die out fast and I wonder if it will even take the next generation to do it. when a couple of guys in their basement can make a few million dollars with a hit ios game, that tells me where the future is.
What? AAA titles will never go away. ever. for the same reason that movies and high priced sound system still exist even though more people watch tv and listen to music on their cell phone.

Also , what do you think the capital investment is to develop xbox or ps3 games?
Deal Guru
Jul 19, 2012
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drdrma wrote: What? AAA titles will never go away. ever.
lol @ reading skills
development costs are insane now and it's like the us where 10% of the games make 90% of the revenue. if sony and microsoft make it even more expensive all we'll see is properties like cod, halo, gow/geow, uncharted, gta and the various ea sports games.
that's why many believe this generation will be the last one for the masses
I also clearly stated that gaming will never die, but at some point these games cost $200 million+ are going to have a correction and console gaming cannot survive as a niche market serving a couple of nerds like highend home audio. it needs to be mass market
Deal Guru
Jul 19, 2012
14763 posts
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Montreal
drdrma wrote: Also , what do you think the capital investment is to develop xbox or ps3 games?
for a top level title like cod mw3 it's 200 million dollars and that's what makes the money these days. going cheap with a new ip just guarantees zero sales

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