Video game giant THQ may be circling the drain after reporting a $136.1 million loss in net profit for the 2011 fiscal year. The gaming company has reported a loss the past 3 consecutive years, with their biggest loss of profit in 2009 at $431 million.
THQ has been scrambling to get back on their feet since their missteps with poorly received Homefront and grossly overestimated success with the Nintendo Wii accessory, uDraw. These (and many other) blunders have resulted in the publishers insultingly low $1 shares since December 2011. Adding insult to injury, the NASDAQ has threatened to delist the company if they are unable to increase their share price by the end of a 180 day probationary period.
After announcing that they will be moving away from children’s titles and movie-licensed games, THQ’s restructuring will focus more on remaining core franchises like UFC Undisputed, Darksiders, Saints Row, and Warhammer 40,000. Execs must be remiss kicking themselves after seeing all of the positive hype for Kingdoms of Amalur: Reckoning (released yesterday), after dropping Big Huge Games from their roster in 2009.
THQ is experiencing major internal adjustments “right-sizing” their company with over 170 layoffs. Only time will tell whether or not this restructuring can save their company. July 23 will be a very telling day. Good luck to those who will soon be looking for jobs.
