THQ

For other uses, see THQ (disambiguation).
THQ Inc.
Formerly called
 Toy Headquarters
Public
Traded as
Industry
Fate Chapter 11 bankruptcy
Successor THQ Nordic
Founded 1989 (1989) (as Trinity Acquisition Corporation)[1]
New York, U.S.
Defunct January 23, 2013 (2013-01-23)
Headquarters Agoura Hills, California, U.S.
Area served
 Worldwide
Key people
Products
Revenue Decrease $665 million (2011)[3]
Decrease $136 million (2011)[3]
Parent THQ Nordic
Website www.thq.com

THQ was an American video game developer and publisher. Founded in 1989, the company developed products for home video game consoles and handhelds, personal computers and mobile devices. Its name derived from "Toy Headquarters" during its time as a toy manufacturer in the early 1990s.[1] THQ had offices in North America, Europe and the Asia-Pacific region.

The company published both internally created and externally licensed content in its product portfolio. THQ's internally created games included the Saints Row, Red Faction, MX vs. ATV, Company of Heroes, and Dawn of War series among others. The company also held exclusive, long-term licensing agreements with leading sports and entertainment content creators such as WWE, Nickelodeon, Disney and Pixar.

After years of financial struggles, stock value drop, and debt, THQ declared Chapter 11 bankruptcy in December 2012 and began liquidation of its assets the following month, with several properties either being acquired or auctioned to other developers. In addition, most of the remaining staff were laid off.[4]

In 2014, the THQ trademark was acquired by Nordic Games, which had acquired some of THQ's properties in the auction. It renamed itself THQ Nordic in August 2016.

History

Trinity Acquisition Corporation and founding (1989–1999)

THQ's logo from 1994 to 2000

In 1989, Trinity Acquisition Corporation was founded in New York as a shell corporation to raise money for a future venture in an unspecified field of activity.[5] One year later in April 1990, former LJN co-founder Jack Friedman established the toy company, THQ, Inc., in Calabasas, California with a personal investment of $1 million.[6] "THQ" was an abbreviation for Toy Headquarters.[5] THQ acquired Brøderbund's video game division in September 1990 and released its first video game, Peter Pan and the Pirates, in January 1991.[7][8] Though always formally called THQ, the company typically traded as T•HQ in video games' box arts and instruction manuals.[7] In 1991, THQ agreed to be acquired by Trinity Acquisition Corp. in a stock swap valued at about $33 million with THQ's shareholders owning 51.7% of the new entity.[9] THQ's name was retained for the new company and Friedman was named as its president.[5][6] THQ then acquired video game developer Black Pearl Software of Chicago in 1993.[10]

THQ withdrew completely from the toy business in 1994 to focus solely on video game production. In addition, the company dropped the • from its label.[1] Jack Friedman then left the company in 1995 to co-found the toy manufacturer Jakks Pacific.[11] In 1997, THQ was reincorporated as a Delaware Corporation,[1] and acquired San Diego video game developer Pacific Coast Power & Light.[12]

Company growth, new logo, acquisitions (2000–2009)

THQ's logo from 2000 to 2011

In 2000, THQ introduced a new slanted logo for the new millennium, which it would use for the next eleven years. In February of that year, THQ faced a class action lawsuit over federal securities laws violation due to nondisclosure of material information.[13] In September of the same year, the company expanded its internal product development capabilities with the acquisition of Volition, Inc. located in Champaign, Illinois. Since then, THQ's internal studio system grew to eleven studios across the globe with distinct capabilities across all viable gaming platforms. Examples of these studios are: Relic Entertainment, Vigil Games, Blue Tongue Entertainment, Juice Games, Kaos Studios and Volition, Inc., who worked on games for next-generation consoles as well as PCs. THQ went on to acquire Vigil Games in 2006.[14] On May 10, 2007, THQ reported its highest annual sales figures and net profits ever for the fiscal year which ended on March 31. THQ's revenues reached over $1 billion. In March 2008, THQ announced the development of the world's first ever cheerleading game using the Wii Balance Board.[15][16] Not long after, on November 3, 2008, the company closed five of its internal studios: Paradigm Entertainment, Mass Media Inc., Helixe, Locomotive Games, and Sandblast Games.[17][18] In 2009, huge declines in sales prompted THQ to form a strategic plan to cut $220 million in annual costs by 2010 and invest in "fewer, better bets." Previously in 2007, THQ had a $68-million profit and $1 billion in revenue, which put it within range of their rival Activision. Many of its big-budget games sold poorly, despite having favorable reviews, as the recession hit. Its hold on kids' games based on Nickelodeon TV shows and Pixar movies slipped as kids turned to free online games playable on the Internet. With shares down 86% from the previous year and a market value of only $173 million, THQ had the possibility of being acquired by other companies.[19] In March 2009, THQ spun off Heavy Iron Studios and Incinerator Studios as independent companies, and announced it was looking to sell Big Huge Games. Two months later in May 2009, THQ agreed to sell Big Huge Games to 38 Studios. In August 2009, THQ acquired Midway Studios San Diego for $200,000. The sale of the studio included all assets, except for the TNA iMPACT! video game.[20]

Reorganization, financial struggles (2010–2012)

In February 2010, THQ announced that Juice Games and Rainbow Studios would be part of a reshuffle, and would now bear the title THQ Digital Warrington and THQ Digital Phoenix, respectively. It is said that 60 members of staff face redundancies between THQ's US Rainbow studio and the UK Juice Game's studio.[21] In August 2010, THQ unveiled the uDraw GameTablet, a $70 accessory for Nintendo's Wii console that lets gamers draw and play on their television screens. The white, 9-by-7-inch peripheral houses a Wii Remote on the left, with a doodle pad and tethered stylus on the right. THQ said more software for the uDraw would launch every couple of months.[22] In January 2011, THQ sold off its Wireless division to a Swedish mobile company called 24MAS.[23] On January 12, 2011, THQ unveiled its new logo.[24] In March 2011, THQ, after its game Homefront was released, suffered a 26% stock drop. The large drop was speculated to be a result of Homefront's poor reception.[25] On June 13, 2011, THQ announced the closure of Kaos Studios (the developer of Homefront)[26] and THQ Digital Warrington (formerly Juice Games).[27] On July 27, 2011, THQ announced it was dropping the long running Red Faction franchise. This was believed to be due to the poor reception over the latest game in the franchise, Red Faction: Armageddon.[28] In the same year on August 9, 2011, THQ announced it would shift its development focus away from licensed kids and movie-based titles by closing down THQ Studio Australia and Blue Tongue in order to focus on "high-quality owned IP." The company also closed down THQ Digital Phoenix (formerly Rainbow Studios), thus dropping the MX vs. ATV franchise.[29][30][31] In November 2011, a uDraw for the PlayStation 3 and Xbox 360 was released.[32] However, it was a commercial failure,[33] and is considered one of the main causes of the financial woes that broke up the company.[34][35] In February 2012, THQ discontinued the uDraw GameTablet to focus on adult core gaming.[36] In May 2012, THQ reported a net loss of $239.9 million for the fiscal year ending March 31, 2012. The loss was $100 million more than the previous fiscal year's loss of $136.1 million.[37] THQ filed a notice with the SEC on May 25 for a June 29 stockholder's meeting, where THQ asked stockholders to approve a reverse split of the company's common stock.[38] On June 4, 2012, THQ announced a deal to turn over their license for UFC games to Electronic Arts.[39] In July 2012, THQ reported that its stockholders had approved the 1-for-10 reverse share split of its common stock to avert a delisting from the NASDAQ.[40]

Bankruptcy and liquidation, THQ Nordic (2012-present)

On November 13, 2012, THQ reported that they had defaulted on a $50 million loan from Wells Fargo and were on the verge of bankruptcy. With its stock price plummeting from early November values bordering on $3 down to $1.16 and with long-term liabilities of $250 million, THQ was forced to delay the release dates of its flagship titles Company of Heroes 2 and Metro: Last Light to March 2013.[41] On November 29, 2012, THQ partnered with Humble Bundle to launch the Humble THQ Bundle in an effort to raise more money.[42] By December 12, 2012, THQ sold nearly 800,000 bundles, raising around $5 million;[43] THQ President Jason Rubin also made a purchase, spending $11,050 on the bundle.[44] On December 19, 2012, just days after the Humble THQ bundle ended, THQ filed for chapter 11 bankruptcy with the intention of selling THQ and all of its assets to Clearlake Capital Group with Centerview Partners handling the sale.[45][46][47] Skip Paul, a former colleague of Jason Rubin, helped orchestrate the proposed stalking horse bid from Clearlake Capital Group.[48]

However, the bid was ultimately denied by Judge Mary F. Walrath and creditors instead approved an individual auction of THQ's properties, which went ahead on January 22, 2013.[49][50] At the auction, the Homefront franchise was acquired by Crytek (and was later acquired by Koch Media),[51] Relic Entertainment and the video game rights to the Warhammer 40,000 series were sold to Sega, and the publishing rights to Turtle Rock Studios' Evolve and the WWE series were acquired by Take-Two Interactive. Ubisoft acquired THQ Montreal and the publishing rights to South Park: The Stick of Truth while the publishing rights to the Metro franchise and Volition, Inc. were acquired by Koch Media. Vigil Games and THQ's publishing unit were still included in the Chapter 11 case, although all employees related to these entities were laid off.[52][53] In a posting on Twitter on January 23, Platinum Games' producer Atsushi Inaba expressed interest in acquiring the Darksiders franchise from THQ.[54]

On February 26, THQ announced that it would sell off its remaining properties – the Darksiders, Homeworld, Red Faction, and Destroy All Humans! franchises, as well as its licensed and original properties – in a court-approved auction which would be held from April 1 to 15, with the process completed by May.[55] Around the same time, THQ shut down the servers to the 2012 remake of Nexuiz, which was developed by Illfonic.[56]

All of THQ's remaining franchises, including the remainder of its original IPs (aside from Homeworld, which was acquired by Gearbox Software, and Drawn to Life, acquired by 505 Games) and licensed software, were auctioned to Nordic Games in April 2013.[57] The Nickelodeon game license was acquired by Activision.[58]

Creditors initially said the proposed sale of THQ in bankruptcy court benefited current THQ management, including Rubin.[59] Early creditor objections and court documents criticized THQ management.[60] Presiding Judge Walwrath called these criticisms a "conspiracy theory" on record.[61] Creditors ultimately released THQ management, including Rubin, of any malfeasance in the company's official plan of liquidation.[62]

The liquidation of THQ also had an effect on other studios; British developer Blitz Games Studios shut down in September 2013, citing financial difficulties. The company's CEO Philip Oliver said that the demise of THQ, who was a major client for the studio, was one of the major contributing factors to the closure.[63]

On June 12, 2014, Nordic Games announced that it had acquired the THQ trademark, allowing the studio to publish games under the THQ name.[64] In August 2016, the company was renamed THQ Nordic in an effort to better associate itself with the historic brand.[65]

Subsidiaries

Divisions

Former

Sold

See also

References

  1. 1 2 3 4 "Investor Relations". THQ.Inc. Retrieved November 9, 2012.
  2. ↑ "Jason Rubin from Naughty Dog Appointed as President of THQ". Planet Xbox360. Retrieved May 30, 2012.
  3. 1 2 "2010 Annual Report". THQ. 2010. p. 92. Retrieved December 2, 2012.
  4. ↑ Fritz, Ben (January 23, 2013). "THQ bankruptcy auction closes; video game rivals pick up assets". Los Angeles Times. Retrieved March 2, 2013.
  5. 1 2 3 Peltz, James F. (December 24, 1991). "THQ's Video-Game Success Comes With Betting on Winners". Los Angeles Times. Retrieved November 10, 2012.
  6. 1 2 "THQ, Inc. – Company Profile, Information, Business Description, History, Background Information on THQ, Inc.". Reference of Business. Retrieved November 10, 2012.
  7. 1 2 Carlsen, Clifford (September 10, 1990). "Broderbund Software Inc. jettisons Nintendo, games. (THQ Inc. buys New Ventures division from Broderbund)". San Francisco Business Times. Retrieved November 10, 2012.
  8. ↑ "Game Companies:THQ". GameFAQs. Retrieved November 10, 2012.
  9. ↑ "N.Y. Company to Acquire Game Firm in Stock Swap". LA Times. May 21, 1991. Retrieved December 1, 2012.
  10. ↑ "THQ Inc. to Acquire Black Pearl Software". LA Times. March 8, 1993. Retrieved March 2, 2013.
  11. ↑ Nelson, Valerie J. (May 6, 2010). "Jack Friedman dies at 70; toy maker". LA Times. Retrieved November 10, 2012.
  12. ↑ "ames San Jose Game Developer Now Subsidiary of THQ". LA Times. June 6, 1998. Retrieved March 2, 2013.
  13. ↑ "Spector, Roseman and Kodroff, P.C. Announces Class Action Lawsuit Against THQ, INC.". February 20, 2000. Retrieved July 12, 2013.
  14. ↑ "THQ Announces Acquisition of Vigil Games". THQ. March 16, 2006. Retrieved November 10, 2012.
  15. ↑ Dring, Christopher. "THQ announces cheerleading game | Games industry news | MCV". Mcvuk.com. Retrieved January 19, 2014.
  16. ↑ Dring, Christopher (March 7, 2008). "THQ announces cheerleading game". MCVUK. Retrieved March 7, 2008.
  17. ↑ Faylor, Chris (November 3, 2008). "THQ Closes Five Studios". ShackNews. Retrieved November 3, 2008.
  18. ↑ Ransom-Wiley, James (November 5, 2008). "THQ reveals 'Significant Business Realignment'". Joystiq. Retrieved November 6, 2008.
  19. ↑ Pham, Alex (March 5, 2009). "Calabasas publisher has a new game plan". LA Times. Retrieved December 3, 2012.
  20. ↑ "THQ To Obtain Midway's San Diego Studio". Gamer Daily News. August 9, 2009. Retrieved August 10, 2009.
  21. ↑ "THQ Biggest Loser Works Out for Profit". SPOnG.com. February 4, 2010. Retrieved February 5, 2010.
  22. ↑ Saltzman, Marc (August 27, 2010). "Saltzman: Katy Perry gets her Revenge". Toronto Star. Retrieved August 27, 2010.
  23. ↑ "24MAS acquires THQ's Wireless Operations". February 8, 2011. Retrieved February 7, 2013.
  24. ↑ Chester, Nick (January 12, 2012). "THQ reveals new logo for 'new THQ' (Update)". Destructoid. Retrieved December 2, 2012.
  25. ↑ "THQ Stock Price Drops 26%". TheSixthAxis. March 16, 2011. Retrieved March 20, 2011.
  26. ↑ Crossley, Rob (June 13, 2011). "THQ to axe Homefront studio Kaos [Update 2]". Develop-online.net. Intent Media. Retrieved June 13, 2011.
  27. ↑ French, Michael (June 13, 2011). "THQ to cut down UK studio [Update 2]". Develop-online.net. Intent Media. Retrieved June 13, 2011.
  28. ↑ Dutton, Fred (July 27, 2011). "THQ abandons Red Faction franchise". Eurogamer. Retrieved July 28, 2011.
  29. ↑ David Hinkle (August 9, 2011). "THQ lets 200 go, shifts development focus away from kids and licensed titles". Joystiq. Retrieved August 10, 2011.
  30. ↑ Mark Serrels (August 10, 2011). "THQ Closes Blue Tongue And THQ Brisbane To Focus On 'High-Quality Owned IP'". Kotaku Australia. Retrieved August 10, 2011.
  31. ↑ Richard Mitchell (August 8, 2011). "THQ 'not to actively pursue further development' of MX vs ATV franchise". Joystiq. Retrieved August 10, 2011.
  32. ↑ Eykemans, Peter (November 18, 2011). "uDraw Gametablet Impressions". IGN. Retrieved January 4, 2013.
  33. ↑ Dutton, Fred (February 2, 2012). "THQ details full extent of uDraw disaster". Eurogamer. Retrieved January 24, 2013.
  34. ↑ Dodson, Don (January 20, 2013). "THQ auction clouds Volition future". News-Gazette (Champaign-Urbana). Retrieved January 24, 2013.
  35. ↑ Daniel Nye Griffiths (January 24, 2013). "The Break Up - Bankrupt THQ's Assets Sold At Auction". Forbes. Retrieved January 24, 2013.
  36. ↑ "THQ details full extent of uDraw disaster". Eurogamer. 2012-02-02. Retrieved 2012-02-02.
  37. ↑ Conditt, Jessica (May 15, 2012). "THQ sees net loss of $239.9 million, still in business". Joystiq. Retrieved December 1, 2012.
  38. ↑ Peterson, Steve (May 26, 2012). "THQ plans reverse stock split". GamesIndustry International. Eurogamer Network. Retrieved December 1, 2012.
  39. ↑ Plunkett, Luke (June 4, 2012). "EA Gets the UFC License, Will Make Games For Years, Dana White Looks Uncomfortable". Kotaku. Retrieved June 5, 2012.
  40. ↑ "UPDATE 1-THQ Inc announces 1 for 10 reverse stock split". Reuters. July 2, 2012. Retrieved December 1, 2012.
  41. ↑ "THQ, Inc. (NASDAQ:THQI) On the Verge of Bankruptcy". Gamer Daily News. November 13, 2012. Retrieved December 1, 2012.
  42. ↑ "The Humble THQ Bundle Has Arrived". Humble Mumble. Retrieved 15 August 2016.
  43. ↑ Agnello, Anthony J. (November 30, 2012). "Humble Bundle THQ sale raises over $2.3 million with help from CEO". Digital Trends. Retrieved December 1, 2012.
  44. ↑ Good, Owen (December 15, 2012). "Who was the Biggest Beneficiary of THQ's $5 Million Humble Bundle?". Kotaku. Retrieved December 23, 2012.
  45. ↑ "HQ Inc. Secures Asset Purchase Agreement with Affiliates of Clearlake Capital Group, L.P.". THQ. Retrieved December 19, 2012.
  46. ↑ Petitte, Omri (December 19, 2012). "THQ declares bankruptcy, will continue publishing duties". PC Gamer. Retrieved January 19, 2014.
  47. ↑ "Centerview Partners". Centerview Partners. Retrieved August 23, 2013.
  48. ↑ Barnes, Brooks (April 25, 2010). "Longtime Hollywood Hand Is Joining Boutique Bank". The New York Times. Retrieved September 10, 2013.
  49. ↑ Savage, Phil (January 8, 2013). "THQ's franchises and studios to be auctioned off on a "title by title" basis". PC Gamer. Retrieved January 23, 2013.
  50. ↑ "THQ's Quick Sale Denied, Individual Franchises Up for Offer". Tomshardware.com. Retrieved August 23, 2013.
  51. ↑ Pereira, Chris (July 30, 2014). "Crytek No Longer Developing Homefront, Sells Rights to Publisher Deep Silver". GameSpot. Retrieved July 30, 2014.
  52. ↑ Bathon, Michael (February 13, 2013). "Take-Two to Take Over Development of WWE Games From THQ". Bloomberg. Retrieved February 16, 2013.
  53. ↑ Goldfarb, Andrew (January 23, 2013). "THQ Dissolved, Saints Row, Company of Heroes Devs Acquired". IGN. Retrieved January 23, 2013.
  54. ↑ "Platinum Games boss expresses interest in buying Darksiders on Twitter". Polygon. Retrieved January 24, 2013.
  55. ↑ Parker, Laura (February 26, 2013). "THQ to sell remainder of intellectual properties - GameSpot". Gamespot. Retrieved January 19, 2014.
  56. ↑ Tach, Dave (27 February 2013). "Nexuiz Xbox 360 servers taken offline". Polygon. Retrieved 13 August 2016.
  57. ↑ "Going once, going twice! Gearbox picks up Homeworld in THQ auction". Ars Technica. April 22, 2013. Retrieved April 23, 2013.
  58. ↑ Kim Schmierer (2013-07-31). "Spongebob License Bought Out By Activision". ZoKnowsGaming. Retrieved 2016-10-20.
  59. ↑ "Lazard: Blockbuster's Game Expansion No Problem For GameStop". Gamasutra. April 29, 2008. Retrieved January 7, 2014.
  60. ↑ "Distressed Debt News: Objections in the THQI Bankruptcy". Distressed Debt Investing. January 4, 2013. Retrieved January 7, 2014.
  61. ↑ In Re: THQ, Inc., et al., Case No. 12-13398-MFW (Bankr. Ct., D. Del.), Transcript of Hearing on January 4, 2013 (pp. 238-239); lines 24-2. A copy may be viewed at the Office of the Clerk, District of Delaware Bankruptcy Court, or by contacting Transcriber Reliable at 302-654-8080.
  62. ↑ "Disclosure statement for the first amended Chapter 11 plan of liquidation of THQ Inc. and its affiliated debtors". May 28, 2013. p. 154. Retrieved January 16, 2016.
  63. ↑ Lee, Dave (September 12, 2013). "UK games developer Blitz Games Studios shuts down". BBC News. Retrieved September 15, 2013.
  64. ↑ "THQ trademark acquired by Nordic Games". Polygon. Retrieved July 27, 2014.
  65. ↑ Takahashi, Dean (August 12, 2016). "Nordic Games brings back the THQ name, rebrands as THQ Nordic". VentureBeat. Retrieved August 12, 2016.
  66. ↑ "THQ Announces Formation of XDG – New Team to Streamline Development Outsourcing Needs". Investor.thq.com. March 14, 2006. Retrieved January 2, 2013.
  67. ↑ "An Examination of Outsourcing: The Developer Angle". Gamasutra. Retrieved January 19, 2014.
  68. ↑ Leigh Alexander. "THQ Adds China Office For Company Of Heroes Online, Local Partnerships". Gamasutra.
  69. ↑ "SlingDot.com, A Division Of THQ Inc.". Software Informer. Retrieved 15 August 2016.
  70. ↑ "THQ Wireless Games - IGN". IGN. Retrieved 15 August 2016.
  71. ↑ "Outrage Games". MobyGames. Retrieved January 2, 2013.
  72. ↑ Sinclair, Brendan (November 4, 2008). "THQ shutters five studios, trims two". GameSpot. Retrieved 2009-11-21.
  73. ↑ "THQ Closes Universomo | News | Edge Online". Next-gen.biz. Retrieved January 19, 2014.
  74. ↑ "THQ Shutters UK Studio, Homefront Developer Kaos". Gamasutra. Retrieved January 19, 2014.
  75. ↑ Nakamura, Seiji (February 16, 2012). "THQジャパン、2月29日をもって日本の事務所を閉鎖/今後はライセンスアウトによる他社パブリッシングに" (in Japanese). Game Watch. Retrieved November 18, 2012.
  76. ↑ 6/04/12 8:15pm 6/04/12 8:15pm. "THQ Chooses Today of All Days to Fire Employees, Close Studio". Kotaku.com. Retrieved January 19, 2014.
  77. ↑ General (October 11, 2012). "THQ set to close its Australian office – General and Nintendo News from". Vooks. Retrieved January 2, 2013.
  78. ↑ "Capcom drops software distributor Red Ant for THQ – thq, capcom, bethesda, red ant, midway – ARN". Arnnet.com.au. February 11, 2009. Retrieved January 2, 2013.
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  80. ↑ "THQ Digital Studios Warrington", uk.games.ign.com, IGN, retrieved October 2, 2011

External links

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