January 31, 2012
THQ losing its already weak grip on US stock market
THQ has been the main focus of blunders in the gaming world as of late and THQ’s rough patch only appears to be worsening. With weak game sales and the fail that was the uDraw tablet for X360 and PS3 THQ has been threatened with a NASDAQ delisting. THQ’s share price has fallen below $1, the minimum for a stock listing, if THQ doesnt bring their stock price above $1 by July 23rd they will be delisted from the stock market. If they do manage to bring their stock prices up they will have to maintain it for no less than 10 days to avoid delisting.
The company has been in a downward spiral for a while now, noting that if THQ fails to profit in the 2012 fiscal year it would be their fourth year out of the past five that THQ sustained a yearly loss. There have been massive budget cuts and layoffs which makes THQ’s denial of recently rumored game cancellations questionable. Is THQ still on track for current game scheduling or are they putting on a front to try and save face and salvage what they can without going under?
THQ puts most of the blame on its x360 and PS3 versions of the uDraw tablet. Sure it hurts when a game fails, especially when that game comes with the added costs of necessary hardware, but it seems hard to believe that the bombing of a single unit would cause such disdain for the company, especially when their track record for the past five years has been more loss than profit.
This could be the beginning of the end for THQ, which is a damn shame. Many of my favorite games were developed by THQ and its sad to see them go under the way they are. Lets hope they can salvage their company and start bring back the top hits we have come to expect from them. And lets not forget that should THQ not get it together we may not see some of the highly anticipated games we’ve been waiting for.