THQ

THQ Inc. was an American video game company based in Agoura Hills, California. It was founded in April 1990 by Jack Friedman, originally in Calabasas, and became a public company the following year through a reverse merger takeover. Initially working in the toy business, it expanded into the video game business through several acquisitions before shifting its focus away from toys entirely. THQ continued its trend of acquiring companies throughout the 2000s.

The company published both internally created and externally licensed content in its product portfolio. THQ's internally created game series included Darksiders, De Blob, Destroy All Humans!, MX vs. ATV, Red Faction, and Saints Row, among others. The company also held exclusive, long-term licensing agreements with sports and entertainment content creators, such as Disney/Pixar, DreamWorks Animation, Nickelodeon, and WWE.

After years of financial struggles, stock value drop, and debt, THQ filed for Chapter 11 bankruptcy in December 2012 and commenced liquidation of its assets the following month. Several properties were auctioned to other companies, while the remaining staff were laid off. The "THQ" trademark was eventually acquired by developer Nordic Games (which had also acquired some of THQ's auctioned-off properties) in 2014 and assumed the name "THQ Nordic" in 2016, while continuing a variety of their franchises under said name.

History

Background and foundation (1990–1999)

THQ Inc. was founded by LJN co-founder Jack Friedman in April 1990.<ref name="LA Times 1991" /><ref name="Founding" /> "THQ" is an initialism for "Toy Headquarters".<ref name="LA Times 1991" /> THQ acquired New Ventures, a division of Broderbund, in September 1990.<ref>Template:Cite news</ref> In 1991, Trinity Acquisition Corp, a NASDAQ-listed special-purpose acquisition company (SPAC), agreed to acquire and merge with THQ in a reverse merger takeover.<ref name="LA Times 1991" /> The deal was a stock swap valued at about $33 million, with THQ's shareholders owning 51.7% of the new entity.<ref>Template:Cite news</ref> THQ's name was retained for the new company, its ticker symbol was changed to "THQI", and Friedman was named as its president.<ref name="LA Times 1991" /> THQ then acquired video game developer Black Pearl Software of Chicago in 1993.<ref>Template:Cite news</ref> Following the acquisition, THQ would use the Black Pearl Software name for their Sega games, while the Malibu Games name would be used for the Nintendo games.

THQ withdrew completely from the toy business in 1994 to focus solely on video game production.<ref name="THQ history">Template:Cite web</ref> Around the same time, the company entered into a deal with Electronic Arts to license five titles for various consoles.<ref>Template:Cite magazine</ref> Jack Friedman then left the company in 1995 to co-found the toy manufacturer Jakks Pacific.<ref>Template:Cite news</ref>

At the Winter CES 1995, THQ signed an expanded deal with Electronic Arts to develop games for their 16-bit and 8-bit home consoles and handheld titles.<ref>Template:Cite news</ref> From then on, the Black Pearl Software name would be used for 8-bit and 16-bit games, while THQ introduced the Kokopeli Digital Studios brand name for their 32-bit games.<ref>Template:Cite web</ref>

In 1997, THQ was reincorporated as a Delaware Corporation,<ref name="THQ history" /> and in 1999 acquired San Jose video game developer Pacific Coast Power & Light.<ref>Template:Cite news</ref>

In June 1998, the company entered into a ten-year 50/50 joint venture with Jakks Pacific (entitled THQ/Jakks Pacific LLC) to acquire the WWF (later WWE) video game license, previously held by Acclaim Entertainment.<ref>Template:Cite web</ref> The deal, which would begin in October 1999, would correspond with two titles per year that THQ would handle product development and sales for.<ref>Template:Cite web</ref>

In 1999, it signed a deal to publish Power Rangers video games.<ref>Template:Cite web</ref> Also that year, it signed a licensing agreement with British game developer Codemasters to bring their titles to their handheld market.<ref>Template:Cite web</ref>

Company growth and acquisitions (2000–2009)

Former logo, used from 2000 until 2011

In February 2000, THQ faced a class action lawsuit over a violation of federal security laws due to nondisclosure of material information.<ref>Template:Cite web</ref> In September of the same year, the company expanded its internal product development capabilities with the acquisition of Volition located in Champaign, Illinois. Since then, THQ's internal studio system grew to eleven studios across the globe with distinct capabilities across all viable gaming platforms. Some of these studios, such as Relic Entertainment, Vigil Games, Blue Tongue Entertainment, Juice Games, Kaos Studios and Volition, worked on games for next generation consoles as well as PCs. THQ went on to acquire Vigil Games in 2006.<ref>Template:Cite web</ref>

In 2000, THQ signed a deal with Fox Interactive to bring five of the titles to the Game Boy Color market, such as the Croc franchise.<ref>Template:Cite web</ref> In 2001, THQ obtained an extended agreement with Nickelodeon to produce video games based on their franchises, as well as computer game rights to Rugrats, SpongeBob SquarePants and Rocket Power and console and computer rights to other Nickelodeon shows like Jimmy Neutron: Boy Genius and The Wild Thornberrys.<ref>Template:Cite web</ref><ref>Template:Cite web</ref> The agreement also covered games based on original intellectual properties, such as Tak and the Power of Juju, with the potential that THQ would release a game first, followed by an animated cartoon on Nickelodeon.<ref>Template:Cite news</ref> In 2004, THQ signed an agreement with MGA Entertainment to publish video games based on the Bratz fashion doll line.<ref>Template:Cite web</ref> Also in 2004, THQ's deal with Nickelodeon was extended.<ref>Template:Cite news</ref>

On May 10, 2007, THQ reported its highest annual sales figures and net profits ever for the fiscal year which ended on March 31. THQ's revenues reached over $1 billion. In March 2008, THQ announced the development of the world's first ever cheerleading game using the Wii Balance Board.<ref>Template:Cite web</ref><ref>Template:Cite web</ref> Not long after, on November 3, 2008, the company closed five of its internal studios: Paradigm Entertainment, Mass Media Inc., Helixe, Locomotive Games, and Sandblast Games.<ref>Template:Cite web</ref><ref>Template:Cite web</ref> In 2009, huge declines in sales prompted THQ to form a strategic plan to cut $220 million in annual costs by 2010 and invest in "fewer, better bets." Previously in 2007, THQ had a $68-million profit and $1 billion in revenue, which put it within range of their rival Activision. Many of its big-budget games sold poorly due to the Great Recession, despite having favorable reviews. Its hold on kids' games based on Nickelodeon television shows and Pixar movies slipped as kids turned to free online games playable on the Internet. With shares down 86% from the previous year and a market value of only $173 million, THQ had the possibility of being acquired by other companies.<ref>Template:Cite news</ref> In March 2009, THQ spun off Heavy Iron Studios and Incinerator Studios as independent companies, and announced it was looking to sell Big Huge Games. Two months later in May 2009, THQ agreed to sell Big Huge Games to 38 Studios. In August 2009, THQ acquired Midway Studios San Diego for $200,000. The sale of the studio included all assets, except for the TNA Impact! video game.<ref>Template:Cite web</ref> In December 2009, following many lawsuits between the three companies, THQ signed a standalone eight-year deal with the WWE, replacing the THQ/Jakks Pacific joint-venture deal.<ref>Template:Cite web</ref>

Reorganization, financial struggles (2010–2012)

In February 2010, THQ announced that Juice Games and Rainbow Studios would be part of a reshuffle, and would now bear the title THQ Digital Warrington and THQ Digital Phoenix, respectively. The merger reportedly led to 60 job losses between THQ's US Rainbow studio and the UK Juice Game's studio.<ref>Template:Cite web</ref>

In August 2010, THQ unveiled the uDraw GameTablet, a $70 accessory for Nintendo's Wii console that let gamers draw and play on their television screens. The white, 9-by-7-inch peripheral houses a Wii Remote on the left, with a doodle pad and tethered stylus on the right. THQ said more software for the uDraw would launch every couple of months.<ref>Template:Cite news</ref>

In January 2011, THQ sold off its THQ Wireless division to a Swedish mobile company called 24MAS.<ref>Template:Cite web</ref> On January 12, 2011, THQ unveiled its new logo.<ref>Template:Cite web</ref> In March 2011, THQ, after its game Homefront was released, suffered a 26% stock drop. The large drop was speculated to be a result of Homefront's poor reception.<ref>Template:Cite web</ref> On June 13, 2011, THQ announced the closure of Kaos Studios (the developer of Homefront)<ref>Template:Cite magazine</ref> and THQ Digital Warrington (formerly Juice Games).<ref>Template:Cite magazine</ref>

On July 27, 2011, THQ announced it was dropping the long-running Red Faction franchise. This was believed to be due to the poor reception over the latest game in the franchise, Red Faction: Armageddon.<ref>Template:Cite web</ref> In the same year on August 9, 2011, THQ announced it would shift its development focus away from licensed kids and movie-based titles by closing down THQ Studio Australia and Blue Tongue in order to focus on "high-quality owned IP." The company also closed down THQ Digital Phoenix (formerly Rainbow Studios), thus dropping the MX vs. ATV franchise.<ref>Template:Cite web</ref><ref>Template:Cite web</ref><ref>Template:Cite web</ref>

In November 2011, a uDraw for the PlayStation 3 and Xbox 360 was released.<ref>Template:Cite web</ref> However, it was a commercial failure,<ref>Template:Cite web</ref> and is considered one of the main causes of the financial woes that broke up the company.<ref>Template:Cite news</ref><ref>Template:Cite news</ref>

In January 2012, THQ announced that it was exiting the licensed kids game business to focus on adult core gaming, but would continue to sell previously released titles.<ref>Template:Cite news</ref> In February 2012, THQ also discontinued the uDraw GameTablet for the same reason.<ref>Template:Cite web</ref>

In May 2012, THQ reported a net loss of $239.9 million for the fiscal year ending March 31, 2012. The loss was $100 million more than the previous fiscal year's loss of $136.1 million.<ref>Template:Cite web</ref> That same month, Jason Rubin was appointed president of the company.<ref>Template:Cite web</ref>

THQ filed a notice with the SEC on May 25 for a June 29 stockholder's meeting, where THQ asked stockholders to approve a reverse split of the company's common stock.<ref>Template:Cite web</ref> On June 4, 2012, THQ announced a deal to turn over their license for UFC games to Electronic Arts (EA).<ref>Template:Cite web</ref> In July 2012, THQ reported that its stockholders had approved the 1-for-10 reverse share split of its common stock to avert a delisting from the NASDAQ.<ref>Template:Cite news</ref>

Bankruptcy and liquidation, THQ Nordic (2012–2013)

On November 13, 2012, THQ reported that they could not repay a $50 million loan from Wells Fargo, and were on the verge of Chapter 11 bankruptcy. With its stock price plummeting from early November values bordering on $3 down to $1.16 and with long-term liabilities of $250 million, THQ was forced to delay the release dates of its flagship titles Company of Heroes 2 and Metro: Last Light to March 2013.<ref>Template:Cite web</ref> On November 29, 2012, THQ partnered with Humble Bundle to launch the Humble THQ Bundle in an effort to raise more money.<ref>Template:Cite web</ref> By December 12, 2012, THQ sold nearly 800,000 bundles, raising around $5 million;<ref>Template:Cite web</ref> THQ President Jason Rubin also made a purchase, spending $11,050 on the bundle.<ref>Template:Cite web</ref> On December 19, 2012, just days after the Humble THQ bundle ended, THQ filed for Chapter 11 bankruptcy with the intention of selling THQ and all of its assets to Clearlake Capital with Centerview Partners handling the sale.<ref>Template:Cite web</ref><ref>Template:Cite web</ref> Skip Paul, a former colleague of Jason Rubin, helped orchestrate the proposed stalking horse bid from Clearlake Capital Group.<ref>Template:Cite news</ref>

However, the bid was ultimately denied by Judge Mary F. Walrath and creditors instead approved an individual auction of THQ's properties, which went ahead on January 22, 2013, one day prior to closure.<ref>Template:Cite web</ref><ref>Template:Cite web</ref> At the auction, the Homefront franchise was acquired by Crytek (and was later acquired by Koch Media),<ref>Template:Cite web</ref> Relic Entertainment and the video game rights to the Warhammer 40,000 series were sold to Sega, and the publishing rights to Turtle Rock Studios' Evolve and the WWE series were acquired by Take-Two Interactive. Ubisoft acquired THQ Montreal and the publishing rights to South Park: The Stick of Truth while Volition and the publishing rights to the Metro and Saints Row franchises were acquired by Koch Media. Vigil Games and THQ's publishing unit were still included in the Chapter 11 case, although all employees related to these entities were laid off.<ref>Template:Cite news</ref><ref>Template:Cite news</ref><ref>Template:Cite web</ref> In a posting on Twitter on January 23, PlatinumGames' producer Atsushi Inaba expressed interest in acquiring the Darksiders franchise from THQ.<ref>Template:Cite web</ref>

On February 26, THQ announced that it would sell off its remaining properties – the Darksiders, Homeworld, Red Faction, and Destroy All Humans! franchises, as well as its licensed and original properties – in a court-approved auction which would be held from April 1 to 15, with the process completed by May.<ref>Template:Cite web</ref> Around the same time, THQ shut down the servers to the 2012 remake of Nexuiz, which was developed by IllFonic.<ref>Template:Cite web</ref> In June 2013, Interplay Entertainment acquired the rights to the Freespace franchise from THQ.<ref>Template:Cite web</ref>

All of THQ's remaining franchises, including the remainder of its original IPs (aside from Homeworld, which was acquired by Gearbox Software, and Drawn to Life, acquired by 505 Games) and licensed software, were auctioned to Nordic Games for $4.9 million in April 2013.<ref>Template:Cite web</ref> The Nickelodeon game license was acquired by Activision.<ref>Template:Cite web</ref> This would later expire, with Nickelodeon licensing out their franchises through various smaller publishers, including Nordic.<ref>Template:Cite web</ref>

Creditors initially said the proposed sale of THQ in the bankruptcy court benefited current THQ management, including Rubin.<ref>Template:Cite web</ref> Presiding Judge Walwrath called these criticisms a "conspiracy theory" on record.<ref>In Re: THQ, Inc., et al., Case No. 12-13398-MFW (Bankr. Ct., D. Del.), Transcript of Hearing on January 4, 2013 (pp. 238–239); lines 24-2. A copy may be viewed at the Office of the Clerk, District of Delaware Bankruptcy Court, or by contacting Transcriber Reliable at 302-654-8080.</ref> Creditors ultimately released THQ management, including Rubin, of any malfeasance in the company's official plan of liquidation.<ref>Template:Cite web</ref>

The liquidation of THQ also affected other studios; British developer Blitz Games Studios shut down in September 2013, citing financial difficulties. The company's CEO Philip Oliver said that the demise of THQ, who was a major client for the studio, was one of the major contributing factors to the closure.<ref>Template:Cite news</ref>

On June 12, 2014, Nordic Games announced that it had acquired the THQ trademark, allowing the studio to publish games under the THQ name.<ref>Template:Cite web</ref> In August 2016, the company was renamed THQ Nordic in an effort to better associate itself with the historic brand.<ref>Template:Cite web</ref>

Subsidiaries

Development

Name	Location	Acquired/established	Divested	Fate
Black Pearl Software	Chicago<ref name="LATimes: Black Pearl">Template:Cite web</ref>	Template:Dts<ref name="LATimes: Black Pearl" />	Template:N/A	Intent to dissolve stated in September 1997;<ref>Template:Cite web</ref> in dissolution by November 2000<ref>Template:Cite web</ref>
Heliotrope Studios	Guilford, Connecticut<ref name="Onecle: Heliotrope">Template:Cite web</ref>	Template:Dts<ref name="Onecle: Heliotrope" /><ref>Template:Cite web</ref>	Template:Dts<ref name="SEC: 8-K 1999">Template:Cite web</ref>	Dissolved due to THQ's acquisition of GameFX<ref name="SEC: 8-K 1999" />
GameFX	Arlington, Massachusetts<ref>Template:Cite web</ref>	Template:Dts<ref name="SEC: 10-K 1999">Template:Cite web</ref>	Template:N/A	In dissolution by November 2002<ref>Template:Cite web</ref>
Locomotive Games	Santa Clara, California<ref name="SEC: 10-K 2005">Template:Cite web</ref>	Template:Dts<ref>Template:Cite web</ref><ref name="SEC: 10-K 2000">Template:Cite web</ref>	Template:Dts<ref name="Shacknews: Five studios">Template:Cite web</ref>	Renamed from Pacific Coast Power & Light in April 2005;<ref name="SEC: 10-K 2005" /> closed by THQ<ref name="Shacknews: Five studios" />
Heavy Iron Studios	Los Angeles<ref name="SEC: 10-K 2001">Template:Cite web</ref>	Template:Dts<ref>Template:Cite web</ref>	Template:Dts<ref name="GIbiz: Big Huge">Template:Cite web</ref>	Spun off into an independent company<ref name="GIbiz: Big Huge" />
Genetic Anomalies	Lexington, Massachusetts<ref name="SEC: 10-K 2001" />	Template:Dts<ref name="SEC: 10-K 2000" />	Template:N/A	Template:N/A
Volition	Champaign, Illinois<ref name="SEC: 10-K 2001" />	Template:Dts<ref name="SEC: 10-K 2001" />	Template:Dts<ref name="Eurogamer: Bankruptcy result">Template:Cite web</ref>	Sold to Deep Silver as part of THQ's bankruptcy proceedings<ref name="Eurogamer: Bankruptcy result" />
Helixe	Burlington, Massachusetts<ref name="SEC: 10-K 2001" />	Template:Dts<ref>Template:Cite web</ref>	Template:Dts<ref name="Shacknews: Five studios" />	Closed by THQ<ref name="Shacknews: Five studios" />
Cedar Ridge Construction	Grass Valley, California<ref name="SEC: 10-K 2002">Template:Cite web</ref>	Template:Dts<ref name="SEC: 10-K 2002" />	Template:Dts<ref name="SEC: 10-K 2002" />	Merged into Pacific Coast Power & Light<ref name="SEC: 10-K 2002" />
THQ Digital Studios Phoenix	Phoenix, Arizona<ref name="SEC: 10-K 2002" />	Template:Dts<ref name="SEC: 10-K 2002" /><ref>Template:Cite web</ref>	Template:Dts<ref name="Kotaku: Three studios">Template:Cite web</ref>	Renamed from Rainbow Studios in February 2010;<ref name="GameSpot: THQ Digital">Template:Cite web</ref> closed by THQ<ref name="Kotaku: Three studios" />
Sandblast Games	Kirkland, Washington<ref name="GDSandblast">Template:Cite web</ref>	Template:Dts<ref name="SEC: 10-K 2002" />	Template:Dts<ref name="Shacknews: Five studios" />	Formerly named Cranky Pants Games;<ref name="GDSandblast" /> closed by THQ<ref name="Shacknews: Five studios" />
Outrage Games	Ann Arbor, Michigan<ref name="SEC: 10-K 2002" />	Template:Dts<ref name="SEC: 10-K 2002" />	Template:Dts<ref>Template:Cite web</ref>	Closed by THQ<ref>Template:Cite web</ref>
THQ Studio Australia	Brisbane<ref name="GameStop: THQ Australia">Template:Cite web</ref>	Template:Dts<ref name="GameStop: THQ Australia" />	Template:Dts<ref name="Kotaku: Three studios" />	Closed by THQ<ref name="Kotaku: Three studios" />
Relic Entertainment	Vancouver<ref name="SEC: 10-K 2005" />	Template:Dts<ref>Template:Cite web</ref>	Template:Dts<ref name="Eurogamer: Bankruptcy result" />	Sold to Sega as part of THQ's bankruptcy proceedings<ref name="Eurogamer: Bankruptcy result" />
Concrete Games	San Diego<ref name="SEC: 10-K 2005" />	Template:Dts<ref>Template:Cite web</ref>	Template:Dts<ref name="Shacknews: Concrete">Template:Cite web</ref>	Closed by THQ<ref name="Shacknews: Concrete" />
Blue Tongue Entertainment	Melbourne<ref name="SEC: 10-K 2005" />	Template:Dts<ref>Template:Cite web</ref>	Template:Dts<ref name="Kotaku: Three studios" />	Closed by THQ<ref name="Kotaku: Three studios" />
Kaos Studios	New York City<ref name="SEC: 10-K 2006">Template:Cite web</ref>	Template:Dts<ref>Template:Cite web</ref>	Template:Dts<ref name="GIbiz: Kaos">Template:Cite web</ref>	Closed by THQ<ref name="GIbiz: Kaos" />
THQ Digital Studios Warrington	Warrington<ref name="SEC: 10-K 2006" />	Template:Dts<ref>Template:Cite web</ref>	Template:Dts<ref name="GIbiz: Kaos" />	Renamed from Juice Games in February 2010;<ref name="GameSpot: THQ Digital" /> closed by THQ<ref name="GIbiz: Kaos" />
Vigil Games	Austin, Texas<ref name="SEC: 10-K 2006" />	Template:Dts<ref>Template:Cite web</ref>	Template:Dts<ref name="IGN: Bankruptcy result">Template:Cite web</ref>	Closed as part of THQ's bankruptcy proceedings<ref name="IGN: Bankruptcy result" />
Incinerator Studios	Carlsbad, California<ref name="GIbiz: Big Huge" />	Template:Dts<ref name="SEC: 10-K 2006" /><ref>Template:Cite web</ref>	Template:Dts<ref name="GIbiz: Big Huge" />	Spun off into an independent company<ref name="GIbiz: Big Huge" />
Paradigm Entertainment	Dallas<ref name="SEC: 10-K 2007">Template:Cite web</ref>	Template:Dts<ref>Template:Cite web</ref>	Template:Dts<ref name="Shacknews: Five studios" />	Closed by THQ<ref name="Shacknews: Five studios" />
Mass Media Games	Moorpark, California<ref name="SEC: 10-K 2007" />	Template:Dts<ref>Template:Cite web</ref>	Template:Dts<ref name="Shacknews: Five studios" />	Closed by THQ<ref name="Shacknews: Five studios" />
Big Huge Games	Timonium, Maryland<ref name="SEC: 10-K 2008">Template:Cite web</ref>	Template:Dts<ref name="SEC: 10-K 2008" />	Template:Dts<ref name="GIbiz: Big Huge sale">Template:Cite web</ref>	Sold to 38 Studios<ref name="GIbiz: Big Huge sale" />
Universomo	Tampere<ref name="SEC: 10-K 2008" />	Template:Dts<ref name="SEC: 10-K 2008" />	Template:Dts<ref name="IGN: Universomo">Template:Cite web</ref>	Closed by THQ<ref name="IGN: Universomo" />
THQ San Diego	San Diego<ref name="GameSpot: THQ San Diego">Template:Cite web</ref>	Template:Dts<ref name="GameSpot: THQ San Diego" />	Template:Dts<ref name="Polygon: THQ San Diego">Template:Cite web</ref>	Formerly known as Midway San Diego;<ref name="GameSpot: THQ San Diego" /> closed by THQ<ref name="Polygon: THQ San Diego" />
THQ Montreal	Montreal<ref name="Gamasutra: THQ Montreal">Template:Cite web</ref>	Template:Dts<ref name="Gamasutra: THQ Montreal" />	Template:Dts<ref name="Eurogamer: Bankruptcy result" />	Sold to Ubisoft as part of THQ's bankruptcy proceedings<ref name="Eurogamer: Bankruptcy result" />

Publishing

Name	Location	Acquired/established	Divested	Fate
THQ Entertainment	Kaarst<ref name="SEC: 10-K 1999" />	Template:Dts<ref name="SEC: 10-K 1999" />	Template:N/A	Renamed from Rushware in December 2000<ref>Template:Cite web</ref>
THQ Wireless	Template:N/A	Template:Dts<ref>Template:Cite web</ref>	Template:Dts<ref name="AllThingsD: THQ Wireless">Template:Cite web</ref>	Sold to 24MAS<ref name="AllThingsD: THQ Wireless" />
ValuSoft	Waconia, Minnesota<ref>Template:Cite web</ref>	Template:Dts<ref name="SEC: 10-K 2005" />	Template:Dts<ref name="GIbiz: ValuSoft">Template:Cite web</ref>	Sold to Cosmi Corporation<ref name="GIbiz: ValuSoft" />
XDG (External Development Group)	Template:N/A	Template:Dts<ref>Template:Cite web</ref>	Template:N/A	Template:N/A
Elephant Entertainment	Minneapolis<ref name="SEC: 10-K 2008" />	Template:Dts<ref>Template:Cite web</ref>	Template:N/A	Template:N/A

See also

• List of THQ games

External links

• Official website Template:Webarchive
• Template:Commons category-inline