Forget the delays previously announced for upcoming THQ games, the company’s future itself may be in jeopardy, as it’s now being reported that its stock has taken a further near 50 per cent slump according to Reuters.
This is a harsh blow for the company which has struggled to maintain its position as a dominant publisher in the industry over the past year. It has seen staff firings in external and internal studios, a lawsuit from Adidas over the incompletion of its micoach app and struggling stock prices. Initially the company was thought to be heading for a NASDAQ delisting after its share price dropped below the $1.00 prerequisite for inclusion on the exchange. However in July it managed to bring it back over that threshold.
Since then it’s steadily grown, though this latest drop sees it dip back down by 42 per cent to $1.74 a share. This came off the back of announcements that many upcoming games from the company would be delayed and that the recently released Darksiders 2 managed to sell only 1.4 million copies. While that might sound like a lot, it needed to push at least two million copies to break even.
In the wake of these announcements, THQ has also withdrawn earnings predictions for 2013.
KitGuru Says: Hopefully this is just another hiccup in a bumpy road to THQ recovery. It would be a real shame if it ever completely folded.