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THQ lists how things could go wrong
Every year, THQ files form 10-K (an annual company report) with the Securities and Exchange Commission, and includes a detailed list of "risk factors," or potential problems that could be of detriment to the company. This year's list features a few new items that reflect the vulnerable state of the company."We have incurred operating losses during the last five fiscal years," reads the very first item on the list. "We have restructured our business operations in order to adjust our cost structure to better align with our expected future business; however, we may continue to incur losses in the future."
THQ's new head promises no more job cuts, but 'everything is up for change'
For a guy who's only been on the job for a dozen days, newly appointed THQ president Jason Rubin is awfully comfortable answering very specific questions. He probably should be, given his title, but it was impressive nonetheless that he was able to speak with such specificity to nebulous projects like Guillermo del Toro's planned "Insane" trilogy. "Currently it's still in the slate," Rubin told Joystiq in an E3 interview. That doesn't mean the barely detailed project is a sure thing, of course. THQ will be "a different company" in the next year or two, according to Rubin. Will ambitious projects like Insane make the cut?"I'm taking every project as clay, a clay statue that's been built. It's not nearly been completed. It can be augmented, it can be shrunk, it can be changed. Everything is up for change to make the best possible product that could be," Rubin said.With THQ's financial troubles as of late, it's fair to wonder if the trilogy will ever materialize, not to mention Turtle Rock's unnamed FPS project, or THQ Montreal's new IP. "I'm well aware of the other projects that are kind of in what you would call 'nebulous states' (though internally they may not be so nebulous)," Rubin said. "I have to go around and look at everything over the next few weeks, next month, and I have to then decide which of the titles are the titles we're gonna focus on based on what I believe our future should be."Thankfully for THQ's employees (approximately 1,750 as of March 31, 2011), the coming change within the publisher doesn't mean a reckoning. "We have the appropriate number of teams and the appropriate number of people working on products, and we're not gonna be continuing to cut teams," Rubin told us. "But as far as product goes, I think we'll have to find out exactly where that's going."
THQ's new prez stands behind Montreal studio, though 'there may be empty seats'
When THQ announced its Montreal, Canada-based studio in 2009, the plan seemed a bit on the ambitious side. 400 new employees across five years, two big projects – one of which is overseen by ex-Assassin's Creed creative lead Patrice Desilets, the other being a followup to 2011's Homefront – and a brand new campus meant a lot of money needed to be spent, even with a potentially generous tax credit from the Canadian government.And that was long before THQ's recent financial troubles. It's in that context that we asked newly hired president Jason Rubin to address the future of the Montreal location during an E3 interview. "I think the decision needs to be made which projects we can do, what we can afford to do, and stick to it. Even though THQ Montreal's space may be bigger than what we need right now, there's nothing about that space that prevents us from succeeding," Rubin said.We asked Rubin whether THQ could fulfill the planned 400-person contract across five years in its current financial state. "There may be empty seats," he admitted, but he's not worried that those contractual obligations will affect THQ – nor the Montreal location's – long-term survival. "I'm not saying that we wouldn't fulfill our obligations," Rubin told us. "But assuming for a moment that we don't reach whatever our contractual obligations are, there are very specific clauses in the contract that say what would happen. And I've read the contract, I've gone over it, it was one of the things I did before starting. And there's nothing about the contract or our failing under that contract that would cause the company to fail."Rubin stressed that THQ under his leadership remains dedicated to the Montreal studio and its agreement with the government. "I love Montreal. I definitely wanna do right by Montreal, and I definitely wanna fill that studio. But having said that, if we fail to do that for any reason, that's not going to be a cause for failure for the company." He also addressed potential concern that other THQ studios employees could be moved to the Montreal location. "Were I able to pick up and move people without worry about their families, the projects they're working on, and everything else, I would fill that space in a second," Rubin said.Beyond the co-developed Homefront sequel and the unknown Desilets project, it is unclear what else THQ Montreal is working on, if anything.
UFC 3 failed to break even at 2 million units, report claims
UFC Undisputed 3 failed to break even – which triggered the sale of the UFC license to Electronic Arts – THQ representatives allegedly said during an E3 investor meeting. "THQ sought to exit its UFC contract as the most recent iteration fell short of its ≈2 million unit break-even point," a Wedbush Securities report claims. THQ has yet to confirm the report.EA Sports executive VP Andrew Wilson recently revealed that THQ approached EA to first initiate talks on the deal.In related news, a quick search shows that a number of recently laid off THQ San Diego employees have listed work on "UFC 4" on their LinkedIn profiles. THQ's UFC series originally appeared to be annual with its first two games before the company planned an extra year to develop the latest game.We've reached out to THQ for confirmation on this information, and will update as soon as we learn anything new.
EA has big plans for its UFC game
It's an exciting time at EA Sports for executive VP Andrew Wilson. He's pretty stoked about acquiring the UFC license, the result of the dire financial situation going on at THQ right now, the previous UFC license holder. "Yes, yes it is," Wilson tells me when I say it must be a good time to be in the sports game, uh, game.But how did EA get the license? Who approached who? How did it all go down? How much did EA really pay for the license? While Wilson couldn't go into the specificity I would've liked regarding some of those subjects, he did at least give me some background on how this new deal came together – and just what it means for MMA (Mixed Martial Arts) gaming fans looking forward to the future.
THQ's new boss outlines the company's path to financial salvation
"For me, this is about the future," newly appointed THQ president Jason Rubin told investors during a conference call this morning. Rubin was outlining his plan for the future of THQ – a plan he hopes will take THQ from an ailing company on the fringe of the publishing world to previously untapped financial greatness. "The industry is about to change. If you look at what's happened in the PC business, if you look at what's happened in some of the other businesses out there, you see that print models and different ways of distributing and publishing games has opened up a significant amount of revenue for other companies," Rubin said.Rubin's message – wherein he partially blamed THQ's financial issues on "big incumbent players" who have a "huge advantage in keeping their top spots," such as EA and Activision – seems particularly strange considering THQ CEO Brian Farrell's repeated assertion that the publisher is focused on "core brands" such as Darksiders and Saints Row. As recently as last week, THQ was espousing its "core games" focus. "THQ realigns its focus from a maker of licensed games for broad audiences to a developer of AAA 'Core' games for multiple platforms," the press release announcing Rubin's appointment reads."Companies in a very short amount of time can go from very small to very large. Zynga's a perfect example of that," Rubin said. "I believe that this business has opportunities that are coming on the near horizon to do something very similar. And I think that the teams that we have are properly positioned and properly sized to take advantage of that opportunity." Rubin further explained his hopes for those business opportunities. "This is about looking at what THQ has, looking at what the business is gonna become in the near future, and making a real concerted attack to get in early on the new business model." What that business model will be remains to be seen. We'll be sure to put that question to Rubin when we speak with him later this week.
Metro 2033 sales reach 1.5 million
It's no secret that THQ's Metro 2033 "wasn't properly nurtured," but the game's cult status has translated into over 1.5 million sales since its launch in March 2010 across Xbox 360 and PC."[Metro 2033] released to critical acclaim and disappointing sales. The reality is, back then, THQ didn't market the game and we're very aware of that," said Rich Williams, SVP of Global Marketing at THQ, during an investor meeting this morning. "We're absolutely committed to marketing [Metro: Last Light] appropriately."
THQ confirms closure of San Diego studio
In the hustle and bustle of E3 week, on the very day THQ announced it would transition over the UFC license to Electronic Arts for an 'undisclosed cash payment," the publisher decided to close its San Diego studio."THQ confirms that today's announcement regarding the UFC license transition will affect the company's San Diego studio," the publisher informed Joystiq in a statement. "THQ is working closely with those relevant staff to either find possible employment within the company, or potentially with EA."
THQ relinquishes UFC rights to EA for 'undisclosed cash payment'
Electronic Arts just announced during its E3 press conference that it has entered into a multi-year, multi-product deal with the UFC... so, what happened to THQ? Turns out the financially troubled publisher answered our query quite quickly. Electronic Arts obtained the publishing rights from THQ for an "undisclosed cash payment.""We have relished our relationship with UFC over the last several years and believe that the UFC gaming brand is in great shape. THQ's more focused strategy moving forward meant that transferring the license to EA made sense to all parties," said THQ CEO Brian Farrell. "We would like to thank UFC for their great support and partnership and wish EA all the best moving forward."
Saints Row: The Third is a steal for $17 on Steam this weekend
If you've been waiting to pick up Saints Row: The Third, this weekend is a good time to jump out of an airplane, shoot a few dudes mid-fall and parachute down to safety in Steelport. Until June 4, you can pick up Saints Row: The Third through Steam for $17.If you want all the DLC, the Season Pass is also on sale for $6.79 and includes the Genkibowl VII, Gangstas in Space and The Trouble with Clones DLC packs.
WWE '13 slamming retail October 30
WWE '13 has an official spring off the ropes date of October 30. THQ reiterated the title would launch this year in a recent investor call and accidentally flipped the switch last week on the game's trailer.The financially troubled publisher has six games launching this fiscal year (ending March 2013). Darksiders 2 is set for August 14, Saints Row's Enter the Dominatrix is in September, WWE '13 slams October and Company of Heroes 2, Metro: Last Light and South Park in 2013.
You Don't Know Jack is live on Facebook, as garish and fun as ever
Our editor-in-chief just told everyone on staff, "You don't know jack," which at first we chalked up to another moment of him flaunting his immense gaming and grammatical intelligence while we all cower in terrified inadequacy. Turns out he wanted us to write a post, but now we don't know who this Jack guy is or why he's so newsworthy.Whatever – in unrelated news, You Don't Know Jack is now available for anyone to play on Facebook and holy snack cakes, we just figured out what our EIC wanted us to write about. Now who's dumb, huh?
THQ's Danny Bilson exits as Jason Rubin takes prez spot
THQ announced this afternoon that former executive vice president of "Core Games" Danny Bilson stepped down from his position in the company, and Naughty Dog co-founder Jason Rubin is taking the position of president. Rubin will report directly to chairman and CEO Brian Farrell.Additionally, senior vice president of Core Studios Dave Davis is exiting the company. Bilson, Davis, and the "Core Games" group at THQ lead the charge in recent years on THQ's rebranding (including the logo you see above) from a licensed-game publisher to one developing and publishing what Bilson and co. considered "core" franchises (Warhammer 40K, Saints Row, and Red Faction among others). The move is especially odd considering THQ's continuing initiative to develop "AAA 'Core' games for multiple platforms."As for Rubin's appointment, that's distinctly less odd – he helped create one of the game industry's most successful development studios. "Jason's proven track record in the industry speaks for itself, and he is one of the brightest minds in the business," Farrell said of Rubin's appointment. As for Bilson, Farrell noted his "significant contributions" and thanked him.
Metro: Last Light is not a Wii U title for now, THQ confirms
Metro: Last Light is not in development for Wii U, THQ global brand manager Mark Madsen told Digital Spy.Last Light was included in a Nintendo promo reel for the Wii U at E3 last year, a move Madsen said wasn't premature. "No I don't think it was a bit too early [to show the game at E3]," he said. "As we got along in the development process, we just really wanted to focus on what we knew, focus on PS3, 360 and PC."Last Light may not hit Wii U, but if it does "it won't sim-ship with the other SKUs." At the moment THQ and developer 4A Games are unsure about "what we can do to maximise the code for the Wii U," Madsen said.
THQ planning reverse stock split to avoid NASDAQ delisting
THQ filed plans with the SEC Friday for a June 29 stockholders meeting, where the company will propose a reverse stock split to avoid delisting from NASDAQ.In the filing, the company describes the need for the stock split to maintain the $1 per share minimum that NASDAQ requires for listing. THQ outlined three options in the process: 1:3, 1:5, and 1:10 reverse stock split ratios. Exercising any of these options results in fewer outstanding shares with an increased apparent value per share. For instance, should THQ perform a 1:3 reverse stock split, each stockholder would own one stock for every three owned prior to the split, even though the total value of the company's stock would not change.The company's stock is currently trading at 61 cents per share.THQ first received a delisting warning from Nasdaq on January 31, noting that the company's stock was trading below $1 per share. It has until July 23 to meet-and-maintain that closing standard for ten consecutive business days in order to be eligible for continued listing. THQ recently reported a net loss of $239.9 million for the fiscal year ending on March 31, 2012.
Leaked WWE 13 trailer shows off slams, jams and a Nov. 1 2012 release date
The above leaked trailer for WWE 13, assuming it hasn't been ripped from the pages of YouTube by THQ, shows off many of the wrestling acrobatics and tiny shorts one can look forward to performing and wearing this fall, when the game pile drives its way onto retail shelves come November 1.Eagle-eyed readers will recognize wrestling legends The Undertaker, Stone Cold Steve Austin and Mankind, among newer faces like Sheamus, Mark Henry, CM Punk and Chris Jericho. Hey THQ, how 'bout bringing back some Doink?
Metro: Last Light live-action trailer counts down to armageddon
In Metro 2033, we saw the effects of nuclear war 20 years out. In Metro: Last Light's latest trailer, we see that world ending, missiles and all. We'll thankfully have lots of time to prepare for the apocalypse given the game's recent delay into 2013.
THQ reaffirms existence of inSane, other games
Director Guillermo Del Toro's THQ project, inSane, "is not cancelled" according to THQ's Executive VP of Core Games Danny Bilson. The executive went to Twitter last night to make the declaration.The statement comes a couple days after THQ, which reported a loss of $239.9 million in the previous fiscal year, announced during an investor call it was looking to unload Tomonobu Itagaki's Devil's Third for a few extra bucks.During that same investor call, the company also reiterated that the Turtle Rock Studios (Left 4 Dead) FPS and Patrice Désilets' game, speculated to be 1666, are still in production.
Darksiders 2: Death in the shadow of the colossus
Darksiders 2's Death is apparently not good at the maths. A man runs at 10MPH. A horse can trot at 30MPH. A colossus lumbers along faster than both. Don't kill the colossus, Death! Put out a picnic near the back of one of its shoulders and casually relax to your destination.
THQ sees net loss of $239.9 million, still in business
THQ saw a net loss of $239.9 million for the fiscal year ending March 31, 2012, $100 million more than the previous fiscal year's loss of $136.1 million."We have made significant changes to our business, and are on track to execute our strategy of delivering quality connected core gaming experiences, beginning with the sequel to the award-winning Darksiders in August," president and CEO Brian Farrell said in a THQ earnings statement.THQ has seen a rough year, with plummeting revenue despite the success of Saints Row: The Third and WWE '12. THQ laid off 240 employees, slashed the salaries of its head honchos and cut its "kids' licensed video games" department earlier this fiscal year, following quarter losses of nearly triple the previous period.THQ has sold through 84 percent of its shipped uDraw tablets and expects to sell its remaining inventory in fiscal 2013. The company's "future kids' license commitments" have been reduced by $30 million, THQ reports.THQ describes its emergency layoffs, salary cuts and company rehashing as follows: "The company exited the traditional kids' licensed games business, and streamlined its product line, organization and cost structure to support a smaller company positioned for sustained profitability."
