THQ is in real financial trouble

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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.

THQ Nosedive

THQ stock takes a nosedive...

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In the wake of these announcements, THQ has also withdrawn earnings predictions for 2013.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.

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