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For other uses, see THQ (disambiguation).

THQ
Industry
Founded1989 (as Trinity Acquisition Corporation)[1]
DefunctJanuary 23, 2013
FateIn-name-only unit of Nordic Games
Headquarters
Agoura Hills, California
,
United States
Area served
Worldwide
Key people
ProductsSaints Row series (sold to Koch Media)
Darksiders series (sold to Nordic Games)
Company of Heroes series (sold to Sega)
WWE series (sold to Take-Two Interactive and 2K Sports)
Homefront series (sold to Crytek, who later sold the property to Deep Silver)
Destroy All Humans! series (sold to Nordic Games)
Warhammer 40,000 series (sold to Sega)
Red Faction series (sold to Nordic Games)
MX vs. ATV series (sold to Nordic Games)
South Park: The Stick of Truth (sold to Ubisoft)
RevenueDecrease $665 million (2011)[3]
Decrease $136 million (2011)[3]
ParentNordic Games
Websitewww.thq.com

THQ Inc. was an American video game developer and publisher. Founded in 1989, the company developed products for video game consoles, handheld game consoles, as well as for personal computers and wireless devices. Its name derives from "Toy Head-Quarters" during the time when the company was 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 series, the Red Faction series, MX vs. ATV, Company of Heroes, and the 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 several years of financial struggles and an increasing amount of debt, THQ declared Chapter 11 bankruptcy in December 2012 and began liquidating its assets the following month, with several properties either being acquired by third parties or auctioned off to other developers. In addition, most of the remaining staff were laid off.[4]

The THQ trademark was acquired by Nordic Games in 2014, thus bringing THQ back as an in-name-only unit of that company.[5]

History

1989–1999

File:THQ1997logo.jpg
THQ's logo from 1997-2000

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.[6] 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.[7] "THQ" was an abbreviation for Toy Head Quarters.[6] THQ acquired Brøderbund's video game division in September 1990 and released its first video game, Peter Pan and the Pirates, in January 1991.[8]Cite error: The <ref> tag has too many names (see the help page). Though always formally called THQ, the company typically traded as T•HQ in video games' box arts and instruction manuals.[8] 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.[6][7] 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]

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 the 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]

2010–2013

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 November 2011, a uDraw for the PlayStation 3 and Xbox 360 was released.[23] However, it was a commercial failure,[24] and is considered one of the main causes of the financial woes that broke up the company.[25][26] In January 2011, THQ sold off its Wireless division to a Swedish mobile company called 24MAS.[27] On January 12, 2011, THQ unveiled its new logo.[28] 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.[29] On June 13, 2011, THQ announced the closure of Kaos Studios (the developer of Homefront)[30] and THQ Digital Warrington (formerly Juice Games).[31] 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.[32] 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.[33][34][35] In February 2012, THQ discontinued the uDraw GameTablet to focus on adult core gaming.[citation needed] 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.[36] 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.[37] On June 4, 2012, THQ announced a deal to turn over their license for UFC games to Electronic Arts.[38] 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.[39]

Bankruptcy and liquidation

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.[40] On November 29, 2012, THQ partnered with Humble Bundle to launch the Humble THQ Bundle in an effort to raise more money.[citation needed] By December 12, 2012, THQ sold nearly 800,000 bundles, raising around $5 million;[41] THQ President Jason Rubin also made a purchase, spending $11,050 on the bundle.[42] 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.[43][44][45] Skip Paul, a former colleague of Jason Rubin, helped orchestrate the proposed stalking horse bid from Clearlake Capital Group.[46]

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.[47][48] At the auction, the Homefront franchise was acquired by Crytek (and was later acquired by Koch Media),[49] 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.[50][51] In a posting on Twitter on January 23, Platinum Games' producer Atsushi Inaba expressed interest in acquiring the Darksiders franchise from THQ.[52] 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.[53] 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.[54]

Creditors initially said the proposed sale of THQ in bankruptcy court benefited current THQ management, including Rubin.[55] Early creditor objections and court documents criticized THQ management.[56] Presiding Judge Walwrath called these criticisms a "conspiracy theory" on record.[57] Creditors ultimately released THQ management, including Rubin, of any malfeasance in the company's official plan of liquidation.[58]

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.[59]

On June 12, 2014, Nordic Games announced that it had acquired the THQ trademark, allowing the studio to publish games under the THQ name.[5]

Subsidiaries

Divisions

  • External Development Group (XDG) was founded in 2006[60] to streamline THQ's outsourcing initiatives. In 2008, the group opened a headquarters in Shanghai, China to transition from traditional business to business outsourcing methods to a form of distributed development.[61][62]
  • Play THQ, used for THQ's family-oriented games beginning in 2007. The label was primarily used to publish licensed games for Disney, Pixar, and Nickelodeon titles.
  • Slingdot.
  • THQ Wireless.

Former

THQ Digital Studios UK

THQ Digital Studios UK Ltd (also known as THQ Digital Warrington, formerly Juice Games) was a video game developer based in Warrington, England;[70] Juice Games was acquired by THQ in March 2006, and was merged with 'Rainbow Studios' in 2010 forming THQ Digital Studios. The Warrington operations were closed in June 2011.[71] Juice Games was formed from the ashes of Rage Games Limited, which was mostly made up of staff from Digital Image Design (bought out by Rage). The company was headed by industry veteran Colin Bell, until the buy out by THQ, who then assumed the position of General Manager.

Sold

  • Big Huge Games in Timonium, Maryland, founded in February 2000, acquired in January 2008, sold to 38 Studios in May 2009, defunct with the closure of 38 Studios in mid-2012.
  • ValuSoft in Minneapolis, founded in 1997, acquired in 2002 and sold to Cosmi in 2012.
  • Relic Entertainment in Vancouver, founded in May 1997, acquired in May 2004. Sold to Sega on January 22, 2013.
  • Volition in Champaign, Illinois, founded in November 1996, acquired in September 2000. Sold to Deep Silver on January 22, 2013.
  • THQ Studio Montreal in Montreal, Quebec, founded in October 2010 is THQ's first North American studio that was not acquired. It is also described to be THQ's largest studio hiring more than 500 employees. Sold to Ubisoft on January 22, 2013.

See also

References

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  2. ^ "Jason Rubin from Naughty Dog Appointed as President of THQ". Planet Xbox360. Retrieved May 30, 2012.
  3. ^ a b "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. ^ a b "THQ trademark acquired by Nordic Games". Polygon. Retrieved July 27, 2014.
  6. ^ a b c Peltz, James F. (December 24, 1991). "THQ's Video-Game Success Comes With Betting on Winners". Los Angeles Times. Retrieved November 10, 2012.
  7. ^ a b "THQ, Inc. – Company Profile, Information, Business Description, History, Background Information on THQ, Inc". Reference of Business. Retrieved November 10, 2012.
  8. ^ a b 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.
  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. {{cite news}}: Italic or bold markup not allowed in: |publisher= (help)
  11. ^ Nelson, Valerie J. (May 6, 2010). "Jack Friedman dies at 70; toy maker". LA Times. Retrieved November 10, 2012.
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