THQ share price plummets to new low
Wednesday, 18th April 2012 at 10:24 am
Value falls 28 per cent since same time last month
THQ share prices hit a new 52 week low yesterday as the company closed at $0.45.
The embattled publisher, which was threatened with a delisting from the NASDAQ in January unless it could reverse its performance, has continued to struggle despite a number layoffs and restructuring in recent months.
Shares began the week at $0.51, showing an 11.8 per cent decrease in the last seven days, whilst shares have also dropped approximately 28 per cent since this time last month.
This is also the lowest shares have closed at in a 52 week period.
The publisher’s troubles began following the release of its casual product U Draw last year, which was met with revenues below expectations despite a cross-platform release.
Studios such as Kaos in New York, UK and Australia have seen a number of layoffs, whilst THQ has also closed its Japan publisheing Arm and downsized its operations at Vigil Games and Relic Entertainment, axing reportedly up to 120 staff.
Such have the problems been for THQ, CEO of rival publisher Take-Two predicted earlier this month that the beleaguered company “won’t be around in six months”.
"Quality really, really, really matters," said Zelnick.
"THQ has had some good games, but their quality... hasn't measured up."
"Strategy didn't work and the execution was bad. To put it another way: the food was no good and the portions were small."
Despite the publisher’s struggles, and posting a $56 millin loss for the Christmas quarter, THQ outlined a 17 game rescue plan in February to assure investors of its future.
Games that the company plans to release in the next two years include Homefront 2, Metro: Last Night, Darksiders II and South Park: The Game.
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