Send News. Want a reply? Read this. More in the FAQ.   News Forum - All Forums - Mobile - PDA - RSS Headlines  RSS Headlines   Twitter  Twitter
Customize
User Settings
Styles:
LAN Parties
Upcoming one-time events:

Regularly scheduled events

THQ Refocuses - Open Letter

NeoGAF has a lengthy letter sent anonymously overnight to the THQ Board of Directors, and signed by "The Formerly Mismanaged," who claim to be a group of "Current and Ex-Employees, Shareholders, and The Public" (thanks Strategy Informer). The letter attempts "to explain to outsiders how this beaten-down company has wound up in this position, laying blame for sharp declines to the company's stock price at the feet of CEO Brian Farrell, and calling other executives to task by name for failures to live up to their seven-figure salaries. On a related, though perhaps coincidental note, THQ announces a realignment whereby it is "exiting its relationships with kidsí licensed entertainment companies but will continue to sell certain previously released titles." Going forward, word is: "The company will continue to build its strong portfolio of core game franchises and align its resources to deliver games on both existing consoles and new and emerging platforms. The company intends to accelerate digital revenues by extending and supporting key console launches, and to create dedicated digital properties for emerging platforms." Here's a portion of the open letter:

THQ had been known through the years for having a formula. They find a hot license, make a cheap game, barely advertise it, and make money. This formula worked during the Playstation and Xbox and Gameboy days and made the company a lot of cash. Unfortunately, THQís old guard executives seem to be stuck trying to manage the company the same way they did back then and havenít realized the industry has changed.

The beginning of the end came years ago as Brian Farrell lead an executive team to acquire a large number of studios. A large amount of cash was used in the acquisition or setup of game developers with different degrees of talent. The problem was they were bought without strategic reasoning or specific plan on to use them. So after awhile another large amount of money was spent as those studios failed and were sold off and shut down. The executive team at the time were an entirely different group of people with one key exception in the CEO. The CEO/the then executive team wasted the cash that the company had built up with these massive investments and selloffs.

The studio purchase errors were not helped by the mistakes in the licensing deals that were signed by the same CEO. Millions and millions of dollars were wasted on acquiring licenses at the same time the kids, family, casual business was declining at a rapid rate. Instead of slowing those acquisitions he overpaid for more of them until again cash was wasted in paying for brands that didnít sell well anymore.

Post Comment
Enter the details of the comment you'd like to post in the boxes below and click the button at the bottom of the form.

Subject
Comment
     
 
      ;)   ;)   :(   :(   :o   :o   %)   %)   :)   :)   :|   :|   ;P   ;P   X|   X|   :D   :D   More
 
Login Email   Password Remember Me
If you have a signature set up, it will be automatically appended to your comment.
If you don't already have a Blue's News user account, you can sign up here.
Forgotten your password? Click here.
 
          Email me when this topic is updated.
 

Special Codes

  • b[bold text]b
  • i[italic text]i
  • u[underline text]u
  • -[strikethrough text]-
  • c[code text]c
  • +[bullet point]+
  • q[quote text (indented)]q
  • [quote="Author"]quote text (indented)[/quote]
  • [url=Link]text[/url]
  • r{red text}r
  • g{green text}g
  • b{blue text}b
  • m{maroon text}m
  • s{secret text (shows in the background colour)}s

Forum Rules

  1. Disagree all you want but attacks of a personal nature will not be tolerated.
  2. Ethnic slurs and homophobic language will not be tolerated.
  3. Do not post spam, links to warez sites, or instructions on how to obtain pirated software.
  4. Abusing the forums in any manner that could be construed as 'griefing' will not be tolerated.


footer

Blue's News logo