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THQ (THQI -39.1%) is getting walloped following its FQ2 report. Though results beat (very low)...
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Tuesday, November 6, 2012, 10:25 AM ETTHQ (THQI -39.1%) is getting walloped following its FQ2 report. Though results beat (very low) estimates, the company suspended its FY13 guidance, delayed the release of South Park: The Stick of Truth to early FY14 from March '13, and stated it will need fresh capital to finance game development. THQ, which has $100M in convertible notes due Aug. '14, says it has engaged an advisory firm to help evaluate alternatives. With its market cap now standing at just $12.7M, it's safe to assume many doubt THQ's ability to avoid bankruptcy. (transcript)
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Darksiders "disappointment" was not a surprise to anyone. The only "surprise" this year is how well Saints Row is selling through. The delays are unfortunate, but there's nothing worse for a struggling company than mediocre releases.
I have strong faith in South Park, Company of Heroes, and Metro: Last Light. These titles have rave reviews from E3 and other previews, and should sell through strong.
They are going to be the best non-holiday releases of 2013. If GTA stays low key, expect a massive SR4 title, 5M+ sales there.
20-bagger potential from this price point.
...and although Darksiders II was a disappointment, there's not much left here but upside. Wii U will have DS2, and download content should bring this title back to break-even status, if not a small profit. All the expenses have already been paid, so future DS2 losses are all non-cash.