THQ wipes 2014 slate, getting ready for sale

[leo8877]

http://kotaku.com/5876253/thq-wipes-out-games-planned-for-2014-to-ready-itself-for-sale-says-insider

Sounds like they are going to give up their licenses too.  Bummer about Warhammer 40k.  Such a great license.  I hope whomever picks it up does it justice.

[CeeKay]

looking at what franchises fall in their libraries-  Saints Row, Darksiders, STALKER, Red faction, Company of Heroes, Metro....

[TiLT]

Aw man, the WH40k MMORPG was the only new MMORPG I've been even remotely interested in for years. I hope someone else gets the opportunity to pick it back up.

[Nonnahob]

Darksiders... One of my favorite and most unexpected hits in a while. Hope it continues!

[Caine]

does that mean that the 2012/13 games are ok for now?  they still have darksiders 2 to put out as well as whatever volition is doing. 

damn shame though that they have fallen that far.  let's hope a decent pub (not activision) picks up the pieces.  dare i say that EA might be a good host? (shudder the thought)

I also hope this doesn't tank the expected homefront sequel from crytek.  that could be worth a shot.

[metallicorphan]

does that mean that the 2012/13 games are ok for now?

Yes,i think so,well,I certainly hope so,THQ are to publish this years South Park RPG game from Obsidian which i am very much looking forward to

[Enigma]

[Update] THQ's chief spokesperson has issued a statement denying the rumor that it has canceled its 2014 projects.

"THQ has not cancelled its 2014 line-up, and has not made any decisions regarding the planned MMO. As part of the ongoing review of our business, we have made decisions to ensure that the company is strategically addressing the most attractive markets. As we have previously announced, we have dramatically reduced our commitment to the kids' boxed games sector which leads to a significantly more focused release schedule moving forward. Our slate for calendar 2012 and beyond is focused on high-quality core games and continues to build our digital platform and business. We are excited for our pipeline of original and high-quality content along with our relationships with some of the best talent in the industry."

I can't imagine that cancelling upcoming projects would help you attract buyers.  Seems like this is just a rumor.  THQ has made some great games....they better stay in business!

[Caine]

well that's a relief

[EngineNo9]

I can't say that "THQ... has not made any decisions regarding the planned MMO" is exactly comforting denial.  I'd like to trust them, but the fact that they closed down 5 studios last year alone and there has recently been a hiring freeze instituted at some of their studios leads me to believe there is more credibility to the rumor than not.

[TiLT]

I can't say that "THQ... has not made any decisions regarding the planned MMO" is exactly comforting denial. 

To me that's as close to confirmation as we're going to get without them coming out and saying it directly. It reads like "We've canceled the game but haven't filled out the paperwork yet".

[Maggot]

That statement is not very good to be honest. There's no denying the way things have been going for THQ and with the multiple reports of them pretty much only existing to be sold, i still fear for them closing. Hopefully if it happens some good publishers and devs will pick up the IP's if they do go under.

[Purge]

Honestly, I wouldn't mind a Homefront 2 - just learn from your mistakes. The concept was good, but the execution lacked. Since KAOS isn't around anymore though, who knows - it was built to be the first chapter.

I too was surprised by, and loved Darksiders. After playing through Arkham Asylum though, THQ is going to have to raise the bar, methinks.

[Roguetad]

I can't imagine that cancelling upcoming projects would help you attract buyers.  Seems like this is just a rumor.  THQ has made some great games....they better stay in business!

That's exactly what I was thinking too.  Unless they're just hoping to parcel out their studios with their current 2012-2013 projects, and not make any future investments.  I definitely don't want to see Relic go down as a result of THQ leadership mishandling the business.

I can't even wrap my head around the reality that THQ stock is 66 cents.  What in the world happened?

[Purge]

Homefront advertising?

[Maggot]

Homefront certainly gave their stock a huge dice. That udraw thing too did terrible on ps3 and 360 after they had some success on wii.

[Misguided]

That statement is not very good to be honest. There's no denying the way things have been going for THQ and with the multiple reports of them pretty much only existing to be sold, i still fear for them closing. Hopefully if it happens some good publishers and devs will pick up the IP's if they do go under.

There were not multiple reports, there was a series of tweets by one guy, who as far as I can tell isn't directly affiliated with THQ, which got picked up by some bloggers and whipped into a frenzy. Hell, those tweets didn't even make any sense! Why on Earth if you knew they had scrapped their entire 2014 lineup would you lead with the MMO being cancelled? And "offering themselves to Asian firms to increase value"?? What does that even mean? Then this chucklenuts says later on it is just a rumor? Screw this jackass.

[Misguided]

I can't even wrap my head around the reality that THQ stock is 66 cents.  What in the world happened?

Yeah, it doesn't make much sense to me. They have been losing money, but they have a lot of revenue. They seem to me like they are doing exactly what they need to, which is focusing on their core strengths and ditch the stuff like the children's games that is bleeding them dry. Hopefully they well sell or cancel the MMO, because they are expensive to make up front and the company has cashpoint issues. Sinking that much investment into one game with a distant payoff (should it even come) isn't smart for them right now.

[Purge]

Sad thing is, they already have the server farms in place. Even homefront is server-hosted rather than client round-robin hosting.

[CeeKay]

bankruptcy and sale:

THQ Inc. (NASDAQ: THQI), a leading worldwide developer and publisher of interactive entertainment software, today announced that it entered into an Asset Purchase Agreement with a “stalking horse bidder,” affiliates of Clearlake Capital Group, L.P., to acquire substantially all of the assets of THQ’s operating business, including THQ’s four owned studios and games in development. The sale will allow THQ to shed certain legacy obligations and emerge with the strong financial backing of a new owner with substantial experience in software and technology.

To facilitate the sale, THQ and its domestic business units have filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Court for the District of Delaware. The company’s foreign operations, including Canada, are not included in the filings. The company has obtained commitments from Wells Fargo and Clearlake for debtor-in possession (DIP) financing of approximately $37.5 million, subject to Court approval.

THQ will continue operating its business without interruption during the sale period, subject to Court approval of THQ’s first-day motions. All of the company’s studios remain open, and all development teams continue. The company remains confident in its existing pipeline of games. THQ maintains relationships with some of the top independent development studios around the globe. As part of the sale, the company is seeking approval to assume the contracts of these studios, and Clearlake will assume these contracts.

[leo8877]

I hope somebody good gets the warhammer 40k license!

[Roguetad]

I hope somebody good gets the warhammer 40k license!

I would think that would be a license to print money for a talented company/studio with good business sense.  With how good the DoW games were, and the quality of Company of Heroes, I never thought I'd see THQ filing for bankruptcy.

[Turtle]

http://www.giantbomb.com/news/thq-simultaneously-files-chapter-11-bankruptcy-secures-buyer-for-companys-assets-updated/4477/

So this just popped up. Good to know that my favorite upcoming THQ games will still have a home, and a release.

[CeeKay]

I hope somebody good gets the warhammer 40k license!

I would think that would be a license to print money for a talented company/studio with good business sense.  With how good the DoW games were, and the quality of Company of Heroes, I never thought I'd see THQ filing for bankruptcy.

mismanagement can kill a company quickly.

[Turtle]

Actually, if Space Marine and WAR is any indicator, the 40K and Warhammer license actually isn't worth that much. Instead, it was mainly the fact that certain games using those licenses were pioneers of their genre that also delivered solid gameplay. Dawn of War 1 and 2 were majorly successful RTS games in their own right.

GW really hasn't been doing anything to make their brand something that's more appealing to a larger audience.

[Blackjack]

http://www.giantbomb.com/news/thq-simultaneously-files-chapter-11-bankruptcy-secures-buyer-for-companys-assets-updated/4477/

So this just popped up. Good to know that my favorite upcoming THQ games will still have a home, and a release.

Only thing that makes me nervous (well, the "key" thing) is this "stalking horse bidder" private equity firm (Clearwater Capital) has zero experience with publishers/devs in videogame/PC game development. Nada. So it's great they have "software and tech" experience but Buy.com, NetMotion wireless and Smart Sand don't fall into the realm of videogames.

http://www.clearlakecapital.com/portfolio.html

Flip side? I'm writing about private equity firms acquiring other companies all the time. Many of the equity firms specialize in taking over "distressed assets" (i.e., often companies in bankruptcy, some on the brim of liquidating) on the cheap, turning them around and then selling them for a profit. Not too different in concept than buying some crappy house/condo, investing in lots of improvements, and then finding a buyer.

So, I wouldn't think Clearlake would go after THQ if they didn't honestly feel they could get it back in good shape to sell it later. I'm just saying -- they have no apparent experience in videogame publishing/development.
=======
Boring Stuff:

THQ's news release:
http://investor.thq.com/phoenix.zhtml?c=96376&p=irol-newsArticle&ID=1768687&highlight=

Definition of "stalking horse bidder" at Investopedia:

This method allows the distressed company to avoid low bids on its assets. Once the stalking horse has made its bid, other potential buyers may submit competing bids for the bankrupt company's assets. In essence, the stalking horse sets the bar so that other bidders can't low-ball the purchase price.

This means my plan to get everyone at the GT forums to pool our resources to buy THQ probably won't happen. 

[leo8877]

Actually, if Space Marine and WAR is any indicator, the 40K and Warhammer license actually isn't worth that much. Instead, it was mainly the fact that certain games using those licenses were pioneers of their genre that also delivered solid gameplay. Dawn of War 1 and 2 were majorly successful RTS games in their own right.

GW really hasn't been doing anything to make their brand something that's more appealing to a larger audience.

Space Marine is one of my all time favorite games!

[Turtle]

Yep, it's a good game, but it sold like crap and has pretty much killed off any chance of a sequel.

I've actually heard good things about Clearlake, even if they don't have experience in this kind of publishing, the story I found had them buying something and actually really bringing it back to success.

[metallicorphan]

http://www.computerandvideogames.com/385319/thq-to-be-stripped-of-game-assets-in-major-ip-auction/

Parties have come to agreement: THQI auction now on Jan 22nd. The auction will allow for piecemeal ("title by title") sales of THQ assets

[Isgrimnur]

Even if purchased, there's no guarantee they come back in a timely manner.  I'm still waiting for High Heat Baseball to come back.   

[kronovan]

Despite what they may be saying/spinning I cant tell you 1st hand that things are far from well at THQ's relic studios. One of the gamers in my gaming group  just got axed, and he wasn't the only one. He's been with them for 7 years and goes back as far as Homeworld 2.  I wish THQ would just sell relic to a credible game publisher and be done with it, instead of screwing their employees and gamers.  Here's to you THQ.  

[Roguetad]

Don't screw with Relic!  Many of my favorite pc games are from Relic.  Same goes for Volition too.  I'd like to see a Saints Row 4.

[CeeKay]

I wonder if this will mean anything for the games close to coming out, like Metro Last Light, South Park and Company of Heroes 2.

[Blackjack]

I wonder if this will mean anything for the games close to coming out, like Metro Last Light, South Park and Company of Heroes 2.

What scares me is -- if I read it right -- they're bidding on game IPs/assets, NOT on the developers themselves. So I don't know if anyone can ride in to rescue Relic, if that's necessary.

I want to believe that Company of Heroes 2 is too close to being completed to just flush down the toilet at this point. Hopefully, if that's among the auctioned titles, some other studio will at least help them get it out the door. Maybe Kickstarter can help?

btw, Relicnews posted an item recently revealing another title Relic was working on for 2014 release, called (or at least "code named") Atlas:
http://www.relicnews.com/archives/2012/12/relics-next-project-code-name-atlas/

I doubt they're worrying about that though. They're probably just worried about whether they can get COH2 out the door. Sad.

[metallicorphan]

these are only rumours at the moment

CVG

Ubisoft gets to publish Obsidian's South Park Stick of Truth

SEGA buys Relic Studios

Koch Media WANTS Saints Row devs,Volition(although if they did require them,does not mean they would get Saints Row)