Summary: THQ, a game company established in 1989 to produce toys and video games, had entered chapter 11 bankruptcy and was forced to sell off their properties in an auction to bidders including game companies such as Ubisoft, Sega and Crytek. In addition, they had to lay off their employees whose divisions were not part of the sale, thus retaining a small staff to guide what remains of the company through the rest of the Chapter 11 bankruptcy proceedings. Moreover, Koch Media, which publishes games under the Deep Silver label, will acquire Volition (Saint’s Row) and the Metro franchise, Crytek will acquire the Homefront game license from THQ, and many more game companies were able to buy some of THQ’s properties.
How is this related to technology? : Video games have been a part of technology for so long as they are technological creations which are developed on other technological devices. Therefore, anything closely related to technology, such as a company that creates video games, is related to technology.
- THQ employees (Negative): Any employee of the THQ game company will be negatively affected from this as they will be “layed-off” from their job and would have to find apply for another job. Also, even that small staff to guide what remains of the company through the rest of the Chapter 11 bankruptcy proceedings will be “layed-off” eventually.
- THQ owners (Negative): Similar, to THQ’s employees, THQ owners will be negatively affected as they will lose their company and won’t be able to make income on it anymore and will have to either make a new company or find some other way to make money.
- Companies that bought some THQ property (Positive): Any company that was able to make a purchase on a THQ property will be positively affected as they will be able to earn income off of consumers that enjoy that product. For example, the Saints Row videogame series is very popular and the company that was able to buy that will earn additional income on top of the income they are already earning.
- Companies that didn’t buy some THQ property (Negative/Neutral): Depending on how well the company is already doing in the market (meaning they are selling a fairly decent amount of merchandise in the market) is how they will be affected. For instance, certain companies can be negatively affected if they didn’t buy any THQ property as they may lose some consumers that liked buying their products to those that have acquired a new title to their video games library. However, if a company is selling lots of video games to consumers already, then they will not be greatly affected, if at all, as they are already making a decent amount of money.
- Consumers (Positive/Negative): Depending on how well the new companies develop their newly acquired games from THQ is how consumers that liked buying that certain video game series (like Saints Row) will be affected. For instance, if the new company messes up the game in terms of story, flow and more, then the consumers will be negatively affected as they will have a bad experience when playing it. However, if the company makes the game better, then the consumers will have a fun and great experience playing their game.
- Government (Neutral): Whatever happens with THQ and the other game companies buying their property doesn’t really affect the government as they have more pressing matters to attend to such as the economy.
Reflection/Opinion/Questions: Honestly, THQ going bankrupt is very disappointing to me as they had so many opportunities to sell some unique and enjoyable video games. In addition, I wished that gamers including me would’ve bought more of their products so they would be able to stay and hopefully make new better games. However, even if we did buy a lot of their products they probably couldn’t escape the amount of bills/dues they had to pay off.
How do you feel knowing that THQ will no longer make games?
Would it matter if a company started making a game that another company used to work on?
What do you think will happen to all those employees of THQ after they have been “layed-off”?