THQ, the videogame publisher behind popular titles like the Warhammer 40k franchise and the comical, controversial Saint's Row series, narrowly avoided Nasdaq delisting Wednesday by meeting the minimum bid price listing requirement.
The struggling company, which posted losses and reported layoffs and restructuring late last year, saw its stock close at $1.00 per share or better each of the last 10 consecutive business days, thereby regaining compliance with Nasdaq's minimum bid price listing requirements and buying itself some time to recoup profits next month with the release of Darksiders II, one of its flagship products.
Despite promising sales figures from Warhammer 40k: Space Marine last September, this news comes amid a dismal period for the struggling THQ, which recently gutted and restructured every level of its production to stay afloat. In late May, for instance, it was announced that president Danny Bilson was stepping down to make way for Jason Rubin, one of the creators of popular Playstation console franchises like Crash Bandicoot and Jak and Daxter. And this news came just a day after the company announced it was hiring Ron Moravek, a veteran Canadian game developer who co-founded Relic Entertainment and served as its VP and COO until 2006, as executive vice president of production.
Speaking to Gamesbeat last month at E3, THQ CEO Brian Farrell admitted, It's been a tough year on a number of levels. We've had to completely reposition the company. As you know, for a long time, the kids business was part of our bread and butter. We recognized that the kids business was declining. In fairness, we didn't move quickly enough out of that business, but now we're out, totally focused on core, and I think you're seeing the results here.
While this is good news for the struggling company in the short term, it also places much more pressure on the publisher to outdo itself next month with the release of Darksiders II, a troubling prospect considering that videogame sales traditionally slow to a snail's pace during the summer time before the release of larger titles before the winter holidays.