THQ Delays South Park: The Stick of Truth as Financial Troubles Continue
Written Tuesday, November 06, 2012 By Lee BradleyView author's profile
THQ has delayed a number of games following continued poor financial results.
South Park: The Stick of Truth has slipped from March 5, 2013 to a vague “early fiscal 2014,” while Metro: Last Light and the PC-exclusive Company of Heroes 2 will now hit in March next year.
The announcement was made during THQ’s second quarter financial report last night, during which the extent of the publisher’s continuing struggles were outlined.
Although higher than its own expectations, THQ’s quarterly net loss was $21 million. It has lead the publisher to appoint Centreview Partners to find “strategic and financing alternatives” for the ailing company.
If THQ’s position is not turned around, analysts are predicting an equity sale and failing that, bankruptcy.
Despite this, President Jason Rubin is putting on a brave face, saying that the game delays will ensure the highest possible quality.
“Our fourth quarter releases are the first titles that I have had the ability to materially impact, and experience told me that the games needed additional development time to be market-ready,” he said.
“I firmly believe releasing our fourth quarter titles without extra time for polish in the current environment would lead to underperformance that could in turn lead to future additional capital shortfalls.”
The trouble is, delaying games adds to development costs and means that the publisher has less money coming in.
“Extending development schedules in order to make the best possible titles also has financial implications,” continued Rubin. “Yet there can be no doubt which path has the greatest chance of leading to the long-term success of the company.
“We must follow the course that generates the highest quality games, and will establish THQ as a mark of quality for the consumer.”