If you haven’t heard the news already, THQ’s price, or value, of stock has gone significantly down. As of 3:50 EST, THQ’s share is 55 cents. Nasdaq does not like companies whose price per value is below $1. Thus, THQ got a delisting notice, and you don’t want to get delisted; especially if you’re a shareholder.
A few months back, IGN reported that THQ cut some of their production studios because they’re merging studios together. I’m not going to say, “Obviously, it’s bullshit, and they’re obviously laying off workers.” Although, I would say that based on assumption (but with reason), I am saying that’s bullshit because the L.A. Times reports THQ cutting 240 workers, and CEO Brian Farrell’s salary is reduced from ~$700,000 to ~$350,000. (Ouch. Guess you’re not going to get that new G6 for Christmas. Better stick with the Rolls-Royce.)
Given the article from the L.A. Times, THQ lost most of their revenue and potential profit because of the Wii. The reason why I say that is because, basically, I think the Wii has lost its popularity. Why do I think that? Nintendo’s not showing any profit; only substantial losses; and when was the last time an awesome game (not being related to Zelda, or Mario) came out for the Wii? Even further, the Wii’s niche of “motion-controller” was adopted by the PS3 and the 360. So, if no one is looking at the Wii, and everyone is looking at the 360/PS3 (because of “Call of Duty Fever” and motion-controllers), THQ’s plan of releasing a video game and pretty expensive peripherals for the Wii was flawed.
Or maybe uDraw just sucked.
Even though THQ’s got a bunch of pressure on them I still think the company will do well because they have some pretty sweet games like the Warhammer 40k franchise and Saint’s Row The Third. And, I know I have virtually little experience with stocks, but I would definitely buy a few shares of THQ.
P.S. Blizzard laid off around 600 employees. Seems like there’s a trend going on somewhere…