THQ: Uh-oh

http://investor.thq.com/phoenix.zhtml?c=96376&p=irol-newsArticle&ID=1754428&highlightt=

THQ announced today that South Park™: The Stick of Truth™ is now planned for launch worldwide in early fiscal 2014. South Park: The Stick of Truth had previously been slated for release on March 5, 2013.

Additional changes to fiscal 2013 release dates include those for Company of Heroes® 2 and Metro: Last Light, both of which are expected to ship in March, later than initially planned.

“When I joined THQ the company made a public commitment to quality titles. We always expected that in some cases this would mean that more time would be needed to make sure that every title is of the highest possible quality,” said Jason Rubin, THQ’s President. “Our fourth quarter releases are the first titles that I have had the ability to materially impact, and experience told me that the games needed additional development time to be market-ready.

“I believe South Park’s market opportunity is significant. It is shaping up to be one of the most anticipated titles of calendar 2013. It is also an expansive title, encompassing multiple television seasons’ worth of content. We have been working closely with the co-creators of South Park, Matt Stone and Trey Parker, to make sure all of the game’s content performs to the high standards of the TV show, and this takes time. THQ is committed to giving gamers no less than the rich South Park game they have been waiting for and deserve.

“We are also inspired by the potential for Metro: Last Light and Company of Heroes 2. I believe Metro: Last Light is a title that should set standards for visuals with its stunning atmosphere, unique location and cutting-edge style. Company of Heroes was one of the highest rated RTS titles in history, and Relic insists that the sequel live up to its pedigree. Giving both of these titles time to reach their full potential is the right thing to do for the products.

“THQ is excited about our position and pipeline of games beyond fiscal 2013, including the sequel for Saints Row: The Third, Homefront 2 and the as-yet-unannounced game from Turtle Rock Studios. In total we have ten titles in development for fiscal 2014 and later, almost all of which are based on our own IP. We intend to announce more details about our future slate in the coming months.

“I firmly believe releasing our fourth quarter titles without extra time for polish in the current environment would lead to underperformance that could in turn lead to future additional capital shortfalls. But extending development schedules in order to make the best possible titles also has financial implications. Yet there can be no doubt which path has the greatest chance of leading to the long-term success of the company. We must follow the course that generates the highest quality games, and will establish THQ as a mark of quality for the consumer," concluded Rubin.

“Clearly, THQ faces a number of opportunities and challenges,” added Brian Farrell, THQ’s Chairman and CEO. “I am confident about the opportunities that lie in our robust slate of games and in our studios. But we also face challenges operating with limited capital resources in the highly competitive market for games, and we are working diligently to resolve those challenges.”

Company Exploring Strategic Alternatives

The calendar movement for the release of games will likely create a need for additional capital. THQ has engaged Centerview Partners LLC to assist the company in evaluating strategic and financing alternatives intended to improve THQ’s overall liquidity, including raising additional capital, preserve the company’s ability to bring the best possible games to market during the most advantageous release windows and to help address the $100 million 5% convertible senior notes due August 2014. There can be no assurance that the evaluation of strategic and financing alternatives will result in a transaction or financing, or that, if completed, said transaction and/or financing will be on attractive terms. THQ does not intend to disclose developments with respect to the progress of its evaluation of strategic and financing alternatives until such time as the Board of Directors approves or completes a transaction or otherwise deems further disclosure appropriate.

Guidance

The company is suspending net sales and earnings guidance, and withdrawing its previous guidance for fiscal 2013.

Edit: “Fiscal 2014” starts in April-June 2013, so it’s not calendar year 2014.

After presenting their fiscal results, THQ canceled their Q&A session.

There now needs to be a THQ “SEE YOU LATER, SHITLORDS” image macro.

I believe there’s a scene from The Hudsucker Proxy that goes here.

Quick tidbit. THQ did say Darksiders 2 sold “below expectations” so I’d guess that series will be done.

Is there some secret group of gamers interested in this South Park game?

If I had a company in trouble, I wouldn’t be very excited to have one of my next big games be South Park™: The Stick of Truth.

Well, I hadn’t realised CoH 2 was coming out before March anyway, so that news isn’t disappointing. But I am now even more scared than I already was that THQ will go bust before it comes out.

Agreed, I find the show ok to watch when nothing else is on, even once every 6 months a really inspired show, but I can’t say I care about a game about the show.

Who is this audience, my age group of friend that saw it from the beginning don’t seem to care, and my nephews barely know this show exists.

I hope THQ survives, they could exist just to give me Warhammer 40K games.

They can cancel everything except Saints Row 4.

They are looking for a buyer is my guess.

THQ would be a steal, too. If Bethesda wants to make a play…

Don’t get your hopes up. Even if they make another sequel, it probably won’t be the game you want.

Yes, but only because it’s being made by Obsidian.

I am of course way more excited about Project Eternity.

This.

Eh, there were some follow-ups after that article that clarified his position on Saints Row and also resulted in this awesome picture. I wouldn’t worry about it.

Given the knocks THQ has taken this last year, I’m not reading anything to fret about. Some ship dates slipping doesn’t seem like a big deal, in context.

Seeing an ex-Dog like Jason Rubin suddenly end up with problems like these is very sad. That said, I really hope his influence shines in some of their future games (except Saints Row 4. You’re a great designer, Mr. Rubin, but you don’t get what makes the Saints the Saints).

That episode was pretty overblown. At the end of the day he was saying he thought Volition was talented enough to produce a cross-over, break out hit like Red Dead or Skyrim, but it came off badly when he mirrored the language Crecente used in his question.

As expected. THQ stock is going right into the toilet with this morning’s trading.

https://www.google.com/finance?client=ob&q=NASDAQ:THQI#

Holy shit that is a major hit, esp. after how much it’s tanked this year anyways. 5 years ago it was near $30.

Definitely easy to snatch up now. (Edit: By this I mean someone buys the company, I don’t mean for anyone to think I’m saying to buy this stock.)

Paradox, it’s time you use up all that Gamersgate and CK2 money and buy Relic and their IPs.