Things have just gotten a bit darker for the troubled game publishing giant that is THQ. The company, in the wake of poor financial reports, has seen significantly decreased stock value over the last few months. It’s now so low that NASDAQ has given them a time limit to improve before removing the THQ listing.
The minimum stock value for a NASDAQ listing is $1, which THQ is currently below. The gaming publisher has 180 days to post 10 consecutive trading days with a stock value higher than $1 or else they will be pulled from the NASDAQ. Once that happens, well, there go the company’s investors.
THQ recently announced that they would be moving away from kid-friendly products and licensed movie and television brands in order to focus on more core gaming experiences. Their biggest contemporary folly was bringing the uDraw tablet to the Xbox 360 and PlayStation 3. The well-marketed device bombed at launch and forced THQ to perform cuts and layoffs.
THQ released a statement regarding the new focus of their company in the middle of this January. Here is a chunk of that statement:
As part of the ongoing review of our business, we have made decisions to ensure that the company is strategically addressing the most attractive markets. As we have previously announced, we have dramatically reduced our commitment to the kids’ boxed games sector which leads to a significantly more focused release schedule moving forward. Our slate for calendar 2012 and beyond is focused on high-quality core games and continues to build our digital platform and business. We are excited for our pipeline of original and high-quality content along with our relationships with some of the best talent in the industry.
The publisher now has roughly half a calendar year to improve its outlook before losing its stock listing. Let’s hope, for the sake of franchises like Saints Row and Warhammer, that they can do it.