Author Topic: THQ in default with Wells Fargo over $50 million credit facility  (Read 8569 times)

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Offline shingi_70

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THQ in default with Wells Fargo over $50 million credit facility
« on: November 12, 2012, 11:33:53 AM »
http://www.polygon.com/2012/11/10/3628880/thq-in-default-with-wells-fargo-over-50-million-credit-facility

 
Quote
Troubled publisher THQ dropped more potentially bad financial news on Friday, revealing that it was in "certain defaults" on a $50 million credit facility with lender Wells Fargo.

Looks Like THQ is on the verge of defaulting with Wells Fargo which means in the worst case scernario wells fargo can seize THQs assets and sell them off.

I'm expecting this to happen at the earliest of next month. Thq only has about 10 million on hand and has near 100 million in debt. With Darksiders 2 underpreforming (at least for a company like thq) and them having no big games on the horizon (if I'm not mistaken everything but wwe 14 is delayed)

So what are you guys expecting to happen with the Studio and IPs.

I'm expecting EA to pick up the WWE lisence. Everything else is fair game but I would like nintendo to grab Vigil and Darksiders..

Kind of sad THQ was coming out with some good games but bad bussines decesions (homefront and the stupid tablet) has killed what looks like the last retail based AA game dev.
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Offline KDR_11k

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Re: THQ in default with Wells Fargo over $50 million credit facility
« Reply #1 on: November 12, 2012, 11:45:42 AM »
Volition and Relic are top tier devs, let's hope the insolvency handlers don't do stupid **** like trying to parcel them out to get more money.

Offline Caliban

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Re: THQ in default with Wells Fargo over $50 million credit facility
« Reply #2 on: November 12, 2012, 01:12:29 PM »
Did you guys know that Joe "Mad" left Vigil, and is back at drawing comics again. Wonder what the future of Darksiders will be considering its low sales. I'm still hoping the Wii U version might sell well, so even if THQ sells the IP we might see at least one more future installment.

Also I've been wanting to try Saints Row The Third, and they just released a complete edition... I want it on Wii U dammit.

Offline lolmonade

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Re: THQ in default with Wells Fargo over $50 million credit facility
« Reply #3 on: November 12, 2012, 01:32:50 PM »
Now it's starting to make more sense why UFC took their game franchise to EA after having a few (seemingly) successful games with THQ.
 
What exactly was it that sunk THQ?  I recall them having some pretty well received games lately.

Offline MrPhishfood

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Re: THQ in default with Wells Fargo over $50 million credit facility
« Reply #4 on: November 12, 2012, 02:03:10 PM »
Oh Itagaki, you have the worst luck ever.

Offline shingi_70

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Re: THQ in default with Wells Fargo over $50 million credit facility
« Reply #5 on: November 12, 2012, 02:04:09 PM »
THQ had made the Udraw for wii which made a lot of money. They got greedy and made Udraw for versions for the 360 and PS3 which bombed hard due to no demographic wanting it.

Then THQ made homefront which was supposed to be its tkae on a big AAA shooter like COD or MOH. Problem is that THQ is a AA company who put AAA money into the development and marketing of the game.  I think the game sold moderatly but it didn't do enough too make up the games budget.
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Offline MrPhishfood

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Re: THQ in default with Wells Fargo over $50 million credit facility
« Reply #6 on: November 12, 2012, 04:25:22 PM »
Ah I forgot about Homefront. That'll teach them to try and usurp Call of Doody.

Offline KDR_11k

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Re: THQ in default with Wells Fargo over $50 million credit facility
« Reply #7 on: November 12, 2012, 04:26:09 PM »
Did you guys know that Joe "Mad" left Vigil, and is back at drawing comics again. Wonder what the future of Darksiders will be considering its low sales. I'm still hoping the Wii U version might sell well, so even if THQ sells the IP we might see at least one more future installment.

Also I've been wanting to try Saints Row The Third, and they just released a complete edition... I want it on Wii U dammit.

Yeah, I knew about Madueira quitting, don't really care though. The good parts of Darksiders were just cribbed from Zelda anyway, they don't need a creative director for that.

The DLC for Saints Row is garbage, the base game is all you need.

THQ had made the Udraw for wii which made a lot of money. They got greedy and made Udraw for versions for the 360 and PS3 which bombed hard due to no demographic wanting it.

Then THQ made homefront which was supposed to be its tkae on a big AAA shooter like COD or MOH. Problem is that THQ is a AA company who put AAA money into the development and marketing of the game.  I think the game sold moderatly but it didn't do enough too make up the games budget.

What's all that AA and AAA talk supposed to mean anyway? Stuff like Saints Row, Company of Heroes, the Warhammer 40k games and Red Faction is top tier. The problem with Homefront was a stupid "We want to make a game about an occupied nation but the only nation that's marketable is America* and the only enemy that's left is North Korea" setting plus a mediocre developer. Plus of course being a modern military shooter which seems like a waste of money for anyone who isn't CoD (yet that only strengthens their resolve while they whine about how third party games don't sell on Nintendo systems).

*= Supposedly the game Freedom Fighters was originally meant to take place in some eastern European country that was swallowed up by the Soviet Union but since marketing believes that Americans cannot feel empathy for someone from another country they had to set the game in a Soviet-occupied US instead. I'm not sure whether marketing or terrible writers (looking at you, Tom Clancy) are responsible for the constant regurgitation of "random dude from country X that the US has hated in the last 100 years wants to rebuild his country and attacks America" stories but it's getting really fucking annoying. It wasn't believable the first time, what makes them think they can pull it off another few hundred times? We all know what a modern total war looks like and it's more like Defcon than Call of Duty. At least have the decency of coming up with fictional countries like Ace Combat does if you want equally powerful modern nations. Or hell, have it all end in nuclear annihilation if that's your taste. But don't go around glorifying war like it's always patriotic heroes vs evil monstrosities. That breeds a society that would vote for Hitler.

Offline Kytim89

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Re: THQ in default with Wells Fargo over $50 million credit facility
« Reply #8 on: November 12, 2012, 06:29:11 PM »
When THQ goes bankrupt here are their IPs and studios that I wish to see absorbed into Nnitendo's domain:
 
Franchises:
 
Drawn to Life
Darksiders
Saints Row
Metro 2033
de Blob
Red Faction and Destroy All Humans! (?)
 
Developers:
 
Relic
Vigil
Volition
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Offline BlackNMild2k1

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Re: THQ in default with Wells Fargo over $50 million credit facility
« Reply #9 on: November 12, 2012, 10:37:55 PM »
What exactly was it that sunk THQ?  I recall them having some pretty well received games lately.

I believe it was mostly uDraw from PS360 that sunk that company.

You take a quote from Activisions boss man "There's always money in plastics" (not a direct quote) then mix that with the success of uDraw on Wii and a desire to expand that success on to the HD Twinz... it left them with about a million PS360 uDraw tablets on store shelves (getting pushed out at a discount) and another million or so sitting in a warehouse somewhere collecting dust.

They invested heavily hoping to recreate the Wii market on PS360 and failed horribly. A gamble that cost the company pretty much everything.

Offline broodwars

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Re: THQ in default with Wells Fargo over $50 million credit facility
« Reply #10 on: November 12, 2012, 10:42:26 PM »
What exactly was it that sunk THQ?  I recall them having some pretty well received games lately.

I believe it was mostly uDraw from PS360 that sunk that company.

You take a quote from Activisions boss man "There's always money in plastics" (not a direct quote) then mix that with the success of uDraw on Wii and a desire to expand that success on to the HD Twinz... it left them with about a million PS360 uDraw tablets on store shelves (getting pushed out at a discount) and another million or so sitting in a warehouse somewhere collecting dust.

They invested heavily hoping to recreate the Wii market on PS360 and failed horribly. A gamble that cost the company pretty much everything.

It wasn't just the UDraw, though. They also invested a lot of money into Red Faction Armageddon, including a TV series pilot with "Siffy" (no, I won't dignify that spelling), and that game tanked horribly.  Add in some rather lackluster sales for other games like DeBlob, and THQ's been headed down this road for quite some time.

Hopefully the Darksiders team can stay afloat, at least long enough to deliver the final Darksiders 2 DLC I've already paid for. :P No, seriously, I hope they can keep going. Darksiders 2 is quite good.
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Offline Kytim89

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Re: THQ in default with Wells Fargo over $50 million credit facility
« Reply #11 on: November 12, 2012, 10:47:46 PM »
I really hope that Volition and Vigil Software make it through the collapse of THQ. It would be a real shame to see those talented people at those companies be rendered unemployed. Perhaps Vigil could make Eternal Darkness 2, but this is obviously a pipedream.
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Offline Ian Sane

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Re: THQ in default with Wells Fargo over $50 million credit facility
« Reply #12 on: November 13, 2012, 12:42:10 PM »
I think the only THQ games I own are the N64 wrestling games.  I never understood why THQ and Aki parted ways when clearly that was THE wrestling engine that everyone loved.  THQ in a typical corporate way of thinking probably thought the WWF name was the draw and that you can slap any ol' bullshit gameplay into a licenced IP and the rubes will buy it up.

Then next gen Aki's engine was used for the Def Jam hippity hop game and a M.U.S.C.L.E game but playing those was frustrating because, damn it, I just wanted a real wrestling game and that great engine was trapped behind some limiting gimmick.  And since then Aki has just disappeared and is virtually Japan-only.

Getting Aki working on a wrestling game again will probably be an instant hit for whatever publisher figures that out.  The challenge is in having the faith to do a wrestling game without the licence of an actual wrestling company.

Offline TJ Spyke

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Re: THQ in default with Wells Fargo over $50 million credit facility
« Reply #13 on: November 13, 2012, 12:46:14 PM »
Ubisoft Chairman/CEO Yves Guillemot says he would be interested in picking up certain brands from THQ:

As THQ considers strategic alternatives and speculation grows that the company might be putting certain assets up for sale, Guillemot says Ubisoft is open to considering some of them (though he declined to say which most pique his interest).

"They have good things," he says. "We are always interested in good brands. For sure, it's something we can consider, but I can't tell you more."

http://www.gamesindustry.biz/articles/2012-11-13-ubisofts-guillemot-on-evolving-audiences-and-the-wii-u?utm_source=newsletter&utm_medium=email&utm_campaign=us-daily
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Offline ShyGuy

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Re: THQ in default with Wells Fargo over $50 million credit facility
« Reply #14 on: November 29, 2012, 01:40:15 PM »
THQ is having a fire sale at www.humblebundle.com

includes: Darksiders I, Metro 2033, Company of Valor and more.

Offline BranDonk Kong

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Re: THQ in default with Wells Fargo over $50 million credit facility
« Reply #15 on: December 01, 2012, 10:00:19 PM »
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Offline shingi_70

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Re: THQ in default with Wells Fargo over $50 million credit facility
« Reply #17 on: December 16, 2012, 10:11:38 PM »
Either they really are desprate or they're getting ready to have South Park and Saints Row 4 on steambox.

You know if they aren't dead before those games release.


Really wonder what's going to happen to the studios and IP if the company goes belly up.
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Offline Sarail

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Re: THQ in default with Wells Fargo over $50 million credit facility
« Reply #18 on: December 16, 2012, 10:17:12 PM »
Really wonder what's going to happen to the studios and IP if the company goes belly up.
They should have just kept making AKI/Asmik WWE/WCW wrestling games...
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Offline shingi_70

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Re: THQ in default with Wells Fargo over $50 million credit facility
« Reply #19 on: December 16, 2012, 10:56:33 PM »
This is the 2nd time I've heard this today any reason why they should have stuck with Aki?

I'm guessing EA will be picking up WWE and probably set new studio for it.

Voltion is probably in the best. Postion tobe aquired. The red Faction (minus the last game) and the saints row series have been well received. Voltion is working on Saints Row 4 for next year so having a game almost finsihed would be incentive for a prespective buyer.

Relic I'm not sure about. Darksiders 2 sold below expectations and was kinda over hyped. Also Joe Mad left the studio to do comics again.

South Park for all intensive purposes is finshed so a pub would likely pick it up.

Crytek the developer of Homefront and working on Homefront 2 would probably buy the Ip so they could sell it or contuine the franchise.



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Offline Kytim89

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Re: THQ in default with Wells Fargo over $50 million credit facility
« Reply #20 on: December 16, 2012, 11:08:53 PM »
If Nintendo were to buy Vigil Studios then it would be a good idea since it is based in Austin, Texas like Retro Studios. Nintendo could use it as Retro Studios back up developer, "Retro Studios part 2", to help assist them in making bigger games for the Wii U. 
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Offline Shaymin

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Re: THQ in default with Wells Fargo over $50 million credit facility
« Reply #21 on: December 17, 2012, 07:33:38 AM »
This is the 2nd time I've heard this today any reason why they should have stuck with Aki?

The N64 wrestling games were (and really, still are) best of breed for domestic wrestling games.
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Offline lolmonade

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Re: THQ in default with Wells Fargo over $50 million credit facility
« Reply #22 on: December 17, 2012, 08:19:03 AM »
This is the 2nd time I've heard this today any reason why they should have stuck with Aki?

The N64 wrestling games were (and really, still are) best of breed for domestic wrestling games.

As much as I enjoyed the WCW/NWO games as a kid, whenever i've come back to them, they've felt a bit clunky.
 
Personally, I think the PS1 Smackdown games were some of the best wrestling games i've played.  Granted, I haven't played any since, and that was 10 years ago, so maybe my judgement of those games are cloudy, too..

Offline nickmitch

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Re: THQ in default with Wells Fargo over $50 million credit facility
« Reply #23 on: December 17, 2012, 09:59:16 AM »
They were clunky then. I think it really helped the grapple system you saw with those games.
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Offline @WingmanPorkins

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Re: THQ in default with Wells Fargo over $50 million credit facility
« Reply #24 on: December 17, 2012, 11:33:19 PM »
I invested in THQ ( taking a gamble ) and it 's the worst case if WF sells off assets. Theres still hope but not looking good...  :'(  also don't forget the South Park game also....