THQ

THQ was an American video game publisher and developer whose name originally stood for Toy Headquarters. Founded by LJN co-founder Jack Friedman in April 1990, the company began in the toy business and entered games through acquisitions, publishing agreements, and the development of licensed entertainment products. It was initially based in Calabasas and later headquartered in Agoura Hills, California. In 1991, THQ became a public company through a reverse merger with Trinity Acquisition Corp., retaining the THQ name and adopting the NASDAQ ticker THQI. During the 1990s, THQ transitioned from toys to interactive software. It acquired Black Pearl Software, Pacific Coast Power & Light, and other development resources, while using different labels for games on particular platforms. In 1994, it exited the toy business entirely. Its publishing portfolio combined internally developed properties with licenses from major entertainment and toy companies. Agreements involving Nickelodeon, Disney and Pixar, DreamWorks Animation, WWE, Fox, Warner Bros., MGA Entertainment, and other rights holders gave THQ a substantial presence in children's, family, sports-entertainment, and film-based games. The company expanded aggressively in the 2000s, building a network of internal studios and acquiring or establishing teams such as Volition, Relic Entertainment, Vigil Games, Blue Tongue Entertainment, Kaos Studios, and Juice Games. This structure supported original franchises including Saints Row, Darksiders, Red Faction, Destroy All Humans!, De Blob, MX vs. ATV, and Warhammer 40,000: Dawn of War, alongside licensed releases based on properties such as SpongeBob SquarePants, Rugrats, Pixar films, WWE, and Bratz. At its peak, THQ was one of the largest independent publishers in the console and PC market. THQ reported more than $1 billion in revenue for the fiscal year ended March 31, 2007, but subsequently experienced declining sales, expensive development projects, weaker demand for licensed children's software, and pressure from the transition to new console generations and digital distribution. In response, it closed and sold studios, reduced its workforce, shifted resources toward fewer internally owned properties, and moved away from licensed children's and movie-based games. The uDraw GameTablet, initially successful on Wii but later released for Xbox 360 and PlayStation 3, became a major commercial disappointment after excess inventory and weak demand contributed to the company's financial problems. THQ's financial position deteriorated sharply in 2011 and 2012. It discontinued uDraw, abandoned or closed several franchises and studios, transferred the UFC license to Electronic Arts, carried out a reverse stock split to avoid NASDAQ delisting, and reported a net loss of $239.9 million for the fiscal year ended March 31, 2012. After failing to repay a $50 million loan from Wells Fargo, THQ filed for Chapter 11 bankruptcy protection on December 19, 2012, initially proposing a sale of the company to Clearlake Capital. The proposed whole-company sale was rejected in favor of an auction of individual assets. In January 2013, different buyers acquired major THQ businesses and properties: Sega purchased Relic Entertainment and the Warhammer 40,000 game rights; Koch Media acquired Volition and the Saints Row and Metro properties; Ubisoft acquired THQ Montreal and South Park: The Stick of Truth; Crytek acquired Homefront; and Take-Two Interactive acquired the WWE publishing rights and Evolve. Nordic Games later purchased most of the remaining franchises and intellectual property, while other assets went to companies including Gearbox Software, 505 Games, Interplay Entertainment, and Activision. THQ's remaining operations were liquidated, employees were laid off, and the original company ceased to exist. Nordic Games acquired the THQ trademark in 2014 and adopted the name THQ Nordic in 2016, creating a successor brand but not a continuation of the original corporation.

THQ was established in April 1990 by Jack Friedman, a co-founder of LJN. The initials originally referred to Toy Headquarters, reflecting the company's initial involvement in toys. Soon after formation, THQ acquired New Ventures, a Broderbund division, and began developing a broader entertainment-products business. In 1991, Trinity Acquisition Corp., a publicly listed acquisition vehicle, completed a reverse merger with THQ. The combined company kept the THQ name, changed its ticker to THQI, and appointed Friedman as president. The company moved decisively into video games during the 1990s. It acquired Black Pearl Software in 1993 and used that name for a number of Sega releases, while Malibu Games was associated with Nintendo products. THQ left the toy business in 1994 and subsequently concentrated on publishing and development for home consoles, handheld systems, and computers. Friedman departed in 1995 to co-found Jakks Pacific. THQ later acquired Pacific Coast Power & Light and continued to expand its production capabilities. Licensing was central to THQ's growth. A joint venture with Jakks Pacific secured the WWF, later WWE, video game license beginning in 1999. The company also reached agreements involving Nickelodeon, Disney, Pixar, DreamWorks Animation, Fox, Warner Bros., MGA Entertainment, and other rights holders. These deals produced games based on properties such as Rugrats, SpongeBob SquarePants, The Wild Thornberrys, Jimmy Neutron, Bratz, Pixar films, Scooby-Doo, and WWE. At the same time, THQ built an original-property portfolio and increased its ownership of development capacity. In 2000, THQ acquired Volition, which became one of its most important internal studios. Over the following decade it acquired or operated a large international studio network that included Relic Entertainment, Vigil Games, Blue Tongue Entertainment, Juice Games, Kaos Studios, and other teams. These studios created or supported series including Saints Row, Darksiders, Red Faction, Destroy All Humans!, de Blob, MX vs. ATV, and Warhammer 40,000: Dawn of War. THQ's fiscal year ending March 31, 2007, produced more than $1 billion in revenue, but the company soon faced a reversal in performance. The late-2000s downturn exposed weaknesses in THQ's portfolio. High development costs, weaker sales of some major releases, the changing economics of licensed children's games, and the shift toward free online entertainment damaged results. In 2008 and 2009, THQ closed several studios, spun off Heavy Iron Studios and Incinerator Studios, sold Big Huge Games to 38 Studios, and acquired Midway Studios San Diego for a nominal amount. Management announced a plan to cut annual costs and concentrate investment on fewer projects with stronger commercial potential. THQ continued restructuring in 2010 and 2011. Juice Games and Rainbow Studios were reorganized under THQ Digital names, while THQ Wireless was sold to 24MAS. The company introduced the uDraw GameTablet for Wii and later released versions for Xbox 360 and PlayStation 3. The newer versions sold poorly, leaving THQ with substantial unsold inventory and contributing to its financial crisis. THQ also closed Kaos Studios, THQ Digital Warrington, THQ Studio Australia, Blue Tongue, and THQ Digital Phoenix. It abandoned Red Faction and announced a move away from licensed children's games toward original, adult-oriented properties. In 2012, THQ's losses and debt became unsustainable. Jason Rubin was appointed president in May, and the company reported a $239.9 million net loss for the fiscal year ended March 31. It transferred the UFC license to Electronic Arts, carried out a one-for-ten reverse stock split, and delayed important releases. After acknowledging that it could not repay a $50 million Wells Fargo loan, THQ filed for Chapter 11 bankruptcy on December 19, 2012. The proposed sale of the whole company to Clearlake Capital did not proceed. Instead, the bankruptcy court authorized auctions of individual assets in January and April 2013. Sega acquired Relic Entertainment and the Warhammer 40,000 game rights. Ubisoft acquired THQ Montreal and South Park: The Stick of Truth. Koch Media acquired Volition and the Metro and Saints Row properties, while Take-Two Interactive obtained the WWE publishing rights and Evolve. Crytek acquired Homefront, and later buyers acquired other properties, including Homeworld, Drawn to Life, and Freespace. Nordic Games purchased most of the remaining franchises and licensed and original properties for $4.9 million, although Homeworld and Drawn to Life were excluded from that transaction. The original THQ corporation was liquidated and its remaining employees were laid off. Nordic Games later acquired the THQ trademark and renamed itself THQ Nordic in 2016. That company revived or continued selected THQ franchises, but it was a separate successor business rather than the original THQ corporation.

• 2016

  Nordic Games adopts the THQ Nordic name

  [2]THQ Nordicen.wikipedia.org

  The owner of the THQ trademark renamed itself THQ Nordic after acquiring numerous former THQ properties.

• 2013

  Assets are auctioned and the company is liquidated

  [1]THQen.wikipedia.org

  Studios, franchises, licenses, and other assets were sold to multiple buyers, ending the original company's operations.

• 2012

  THQ enters bankruptcy protection

  [1]THQen.wikipedia.org

  THQ filed for Chapter 11 protection after losses, debt obligations, and liquidity problems worsened.

• 2011

  Restructuring accelerates

  [1]THQen.wikipedia.org

  THQ sold its wireless division, closed studios, ended development of Red Faction, and introduced a new corporate logo.

• 2010

  uDraw GameTablet launches

  [1]THQen.wikipedia.org

  The company launched a drawing and gaming peripheral for Nintendo Wii.

• 2007

  Revenue exceeds one billion dollars

  [1]THQen.wikipedia.org

  THQ reported more than $1 billion in revenue for the fiscal year ending March 31.

• 2000

  Volition is acquired

  [1]THQen.wikipedia.org

  THQ acquired Volition, adding a major internal development studio that later created Saints Row and supported other original properties.

• 1998

  WWF video game joint venture announced

  [1]THQen.wikipedia.org

  THQ and Jakks Pacific created a joint venture to obtain and exploit the WWF video game license.

• 1994

  Exit from toys

  [1]THQen.wikipedia.org

  THQ withdrew from the toy business and focused exclusively on interactive entertainment.

• 1991

  Reverse merger creates a public THQ

  [1]THQen.wikipedia.org

  THQ merged with Trinity Acquisition Corp. and became publicly traded under the THQI ticker.

• 1990

  THQ is founded

  [1]THQen.wikipedia.org

  Jack Friedman founded Toy Headquarters in April, initially combining toy activities with early video game publishing and acquisitions.

A broad-based mainstream publisher combining owned action and strategy franchises with licensed family, film, television, toy, and sports-entertainment products. In its final years, THQ repositioned toward fewer, higher-investment original intellectual properties and adult-oriented core games.

• Original action franchise · 2006

  Saints Row

  An open-world action series developed by Volition and published by THQ. It began as a crime-themed competitor in the open-world action market and progressively adopted a more exaggerated, comedic tone. The franchise became one of THQ's most valuable original properties, with later publishing rights transferred to Koch Media during the bankruptcy asset sales.

• Original action-adventure franchise · 2010

  Darksiders

  An action-adventure series developed by Vigil Games and published by THQ. Its games combined combat, exploration, puzzles, and an apocalyptic fantasy setting. The franchise remained among the assets offered after THQ entered bankruptcy and was subsequently separated from the original corporation.

• Original action franchise · 2001

  Red Faction

  A science-fiction action series associated with destructible environments and planetary settings. THQ published several entries, but announced in 2011 that it would stop pursuing the franchise after the commercial and critical performance of Red Faction: Armageddon.

• Original action franchise · 2005

  Destroy All Humans!

  A satirical action series in which players control an alien invading Earth. It was part of THQ's portfolio of owned intellectual properties and was included among the properties offered during liquidation after the company's bankruptcy.

• Licensed real-time strategy franchise · 2004

  Warhammer 40,000: Dawn of War

  A real-time strategy series developed by Relic Entertainment and published under THQ's agreement with Games Workshop. The franchise helped establish THQ as a significant PC strategy publisher. Relic Entertainment and the relevant video game rights were acquired by Sega during the 2013 bankruptcy auction.

• Licensed sports-entertainment games · 1999

  WWE video games

  THQ's WWE products were based on its long-running relationship with World Wrestling Entertainment, formerly WWF. The company initially worked through a joint venture with Jakks Pacific and later signed a standalone agreement with WWE. Publishing rights moved to Take-Two Interactive after THQ's bankruptcy.

• Gaming accessory · 2010

  uDraw GameTablet

  A tablet-and-stylus peripheral designed to let players draw and interact with games on a television. The Wii version launched first, followed by versions for Xbox 360 and PlayStation 3. The latter releases performed poorly, leaving excess inventory and contributing materially to THQ's liquidity crisis.

• Licensed family and children's games · 1999

  Licensed Nickelodeon games

  THQ published numerous games based on Nickelodeon properties, including Rugrats, SpongeBob SquarePants, Rocket Power, Jimmy Neutron, and The Wild Thornberrys. These releases were a major part of THQ's family-games business before the company withdrew from licensed children's products during its 2012 strategic shift.

• 2000

  Federal securities disclosure class-action lawsuit

  THQ faced a class-action lawsuit alleging violations of federal securities laws related to the nondisclosure of material information. The available reference identifies the litigation but does not establish a finding of wrongdoing by the company.

  Source

Read more

• 2012Humble THQ Bundle

  Global digital market

  THQ partnered with Humble Bundle to sell a discounted package of selected PC games in a pay-what-you-want format. The promotion was intended to generate immediate cash and expose THQ's catalog to digital consumers during its liquidity crisis. It sold nearly 800,000 bundles and raised approximately $5 million, according to contemporary reporting.

  Outcome. Generated short-term proceeds and publicity but did not prevent the subsequent bankruptcy filing.

  Source

• 2012

  Exit licensed children's gamesStrategy

  Background

  THQ faced weaker demand for games based on children's television and film properties as audiences increasingly used free online games.

  Action taken

  The company announced that it would stop pursuing new licensed children's games and concentrate on adult-oriented core games and owned franchises, while continuing to sell existing releases.

  Aftermath

  The repositioning narrowed THQ's business but came too late to resolve its debt and liquidity problems.

  Source

• 2012

  Transfer the UFC license to Electronic ArtsOther

  Background

  THQ was reducing exposure to costly licensed properties while attempting to improve its financial position.

  Action taken

  THQ agreed to transfer its UFC video game license to Electronic Arts.

  Aftermath

  The agreement represented another retreat from licensed publishing before THQ entered bankruptcy protection.

  Source

• 2012

  File for Chapter 11 bankruptcyOther

  Background

  THQ could not repay a $50 million Wells Fargo loan and carried substantial long-term obligations after several years of losses.

  Action taken

  The company filed for Chapter 11 bankruptcy on December 19 with an initial proposal to sell the business to Clearlake Capital.

  Aftermath

  The proposed whole-company transaction failed, and the court instead authorized separate auctions of THQ's studios, intellectual property, licenses, and publishing assets.

  Net loss. 239.9 million USD (Fiscal year ended March 31, 2012)

  Source

• 2011

  Expand uDraw to high-definition consolesProduct launch

  Background

  After introducing uDraw for Wii, THQ sought to broaden the accessory's audience through versions for Xbox 360 and PlayStation 3.

  Action taken

  THQ released the peripheral for the two high-definition consoles in November.

  Aftermath

  The expansion was commercially unsuccessful and produced excess inventory, becoming an important contributor to THQ's subsequent financial distress.

  Source

• 2009

  Adopt a fewer-and-better-bets strategyStrategy

  Background

  Declining sales, weak performance from expensive games, and falling market value placed pressure on THQ's broad studio and licensed-content model.

  Action taken

  The company announced a plan to reduce annual costs by $220 million by 2010 and concentrate resources on fewer high-potential projects.

  Aftermath

  The plan led to studio closures, divestitures, and a greater emphasis on owned intellectual property, but it did not restore the company's long-term financial stability.

  Source

1. 1THQen.wikipedia.org
2. 2THQ Nordicen.wikipedia.org