THQ shares hit 16-year low

NewsPosted 11/08/2011 - 5:07pm GMT+1

Red Faction and Saints Row publisher lays off 200 workers, closes 2 studios.

THQ, publisher of Red Faction, Saints Row and Darksiders, has seen its shares drop to their lowest point in 16 years.

On Wednesday, the company's shares dropped to $1.79, their lowest since 1995.

The drop follows a recent announcement that THQ will be shuttering two development studios in Australia and eliminating a development team in Phoenix, Arizona. The company has also revealed it will be cancelling an upcoming motocross game. The moves will reportedly see the loss of around 200 jobs.

"Investors have become extremely skeptical of THQ," offered Wedbush Securities analyst Michael Pachter. "Honestly, THQ has been saying they've been in a turnaround since 2008."

THQ has yet to comment on the news.

VideoGamer.com Analysis

If things continue in this vein, it's feasible that THQ could end up being gobbled up by a larger publisher. With the money it's been pouring into Saints Row marketing, however, it could well avoid this fate. We'll find out in November.

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FantasyMeister

I think they're investing too much in the Saints Row franchise, which to me has always been second fiddle to GTA. One thing I do like about THQ is their willingness to publish new IP like Red Faction and Darksiders, but they still need one really big blockbuster and I'm not sure any of their existing IPs will provide that for them. Maybe inSANE, but that's not out for a couple of years.

I sincerely hope they will survive and not get gobbled up by a larger publisher or that culture of risk-taking might never get a chance to pay off. But then I guess it's down to the shareholders. I do wish them and all the studios involved well though, they've given me much pleasure over the years.

Posted 17:32 on 11 August 2011