THQ shares collapse after game delays, "Darksiders" letdown
SAN FRANCISCO Nov 6 (Reuters) - THQ Inc THQI.O lost almost half its market value on Tuesday after the struggling videogames publisher delayed a raft of marquee titles, warned of a growing need for new capital, and admitted its "Darksiders II" had undershot expectations.
Shares in the company, which is trimming staff and considering alternatives to try and relieve a potential capital crunch, plunged as much as 46 percent in their biggest single-day loss in years.
On Monday, executives said they were pushing back the release of key titles such as its "South Park" game that were not ready for primetime - a postponement that increases the company's need for capital. It is weighing options and executives did not outline them nor take questions on a Monday post-earnings conference call. [ID:nL1E8M5E3M]
The company has suspended earnings guidance and withdrawn its previous outlook for fiscal 2013.
THQ sold just 1.4 million units of action-adventure game "Darksiders" since its August launch, far short of a break-even target of 2 million. The game's disappointment comes with Microsoft's (MSFT.O) "Halo 4" and Activision Blizzard's (ATVI.O) "Call of Duty: Black Ops 2," launching this month, expected to dominate holiday sales.
THQ's stock, suspended from after-hours trading on Monday, plunged 42 percent to $1.74 in morning trading.
(Reporting By Edwin Chan; Editing by Maureen Bavdek)
((firstname.lastname@example.org)(+1 415 677 2533)(Reuters Messaging: email@example.com)) Keywords: THQ SHARES/
(C) Reuters 2012. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing, or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are registered trademarks and trademarks of the Reuters group of companies around the world.
- Tweet this
- Share this
- Digg this
- Alabama man claims penis was amputated by mistake
- UPDATE 7-French warplanes search Mali desert for crashed Air Algerie plane
- UPDATE 2-U.S. says Russia firing artillery over border at Ukraine military
- UPDATE 8-At least 15 killed by shelling of Gaza school; toll exceeds 760
- Gunmen said to chase investigators from MH17 crash site