THQ can't guarantee financial recovery in spite of major restructuring
We've probably all suspected that THQ has been in financial hot water ever since they closed down their San Diego studio during E3, and this simply confirms it. To be fair, they've been on a downward slope for a while now, and the closure was just the latest in a long string of unfortunate events. Although THQ has been taking action to get themselves off of this slope and back to making profits, they've admitted that this might not be possible in a new SEC filing.
"There can be no assurance that we will be able to grow our net sales in future years," the filling reads. "We have incurred operating losses during the last five fiscal years. We have restructured our business operations in order to adjust our cost structure to better align with our expected future business; however, we may continue to incur losses in the future."
Admittedly, the worst part of this filing is the admission that, if they can't secure additional capital, there's a good chance THQ will be unable to fund the launch for any of their upcoming products. Further, even if they do launch their titles, there's no guarantee they'll provide the ailing developer and publisher enough capital to survive.
"If our products fail to gain market acceptance, we may not have sufficient cash flow to pay our expenditures or to develop a continuous stream of new games."
A gamer at heart, Nick started writing when he was a child. He holds a BA in English, works as a freelancer, and loves every minute of it. One day, he hopes to net himself a career in game design - but that's something for the future.
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