SAN FRANCISCO Nov 6 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The company has suspended earnings guidance and withdrawn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)
((email@example.com)(+1 415 677 2533)(Reuters
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.