Dawn of War box art THQ denies it will go bust in six months

Beleaguered game publisher THQ has denied reports that it will go bust within the next six months, labelling them as “outdated” and “false.”

Beleaguered game publisher THQ has denied reports that it will go bust within the next six months, labelling them as “outdated” and “false.”

 
The company, which publishes games like Dawn of War and the WWE series, was responding to allegations by Take-Two's CEO, Strauss Zelnick, that “THQ won't be around in six months."
 
Zelnick told attendees at the MIT Business in Gaming conference that THQ's strategy is not working and that the execution of that strategy was bad. He said THQ is focusing on licensed content from other people, such as UFC, WWE, Games Workshop, and Disney-Pixar, rather than developing and using its own intellectual property.
 
Licensing leaves game publishers at the mercy of license holders, according to Zelnick, regardless of whether or not the company does a good job with the licensed title. Profits will be eroded by licensing fees, making it difficult for companies that predominantly employ licenses to keep afloat.
 
Dawn of War box art THQ denies it will go bust in six months
 
In Zelnick's address he was also disparaging of THQ's quality, suggesting that Take-Two produces games that are much higher in quality than what THQ is making. He said quality is vital to success in the game industry, but that THQ's quality “hasn't measured up.”
 
"Obviously, Mr. Zelnick's perception of THQ is outdated and inaccurate,” THQ told Joystiq. “His comments are irresponsible and false. Perhaps he would be better off commenting on his own business."
 
Zelnick might be poking his nose where it isn't wanted, but it's hard to deny that THQ is struggling to stay alive. Its shares dropped below $1 in January, which could see it being delisted from the stock market, and it has been forced to cancel a number of projects, including its uDraw tablet computer and its Warhammer 40,000: Dark Millenium Online MMO, which will now be turned into a single-player game instead. With such a run of bad luck, the company's future looks gloomy at best.
 
Source: Joystiq