THQ

THQ Inc.
Company type	Public
Industry	Video games
Founded	1 April 1990; 36 years ago in Calabasas, California, United States
Founder	Jack Friedman
Defunct	2013
Fate	Filed for Chapter 11 bankruptcy; assets sold off; trademark purchased by Nordic Games (THQ Nordic)
Headquarters	Agoura Hills, California, United States
Area served	Worldwide
Key people	Jack Friedman (founder), Jason Rubin (president, 2012)
Products	Video games (including Darksiders, De Blob, Destroy All Humans!, MX vs. ATV, Red Faction, Saints Row)
Number of employees	Unknown
Parent	None

THQ Inc. was a United States-based video game corporation headquartered in Agoura Hills, California. Established in April 1990 by Jack Friedman in Calabasas, California, the company went public the following year through a reverse merger. Initially concentrating on the toy industry, THQ transitioned into the video game sector by acquiring various companies and ultimately devoted itself entirely to gaming, continuing its acquisition strategy throughout the 2000s.

The company published titles developed both internally and under license. Among its prominent in-house franchises were Darksiders, De Blob, Destroy All Humans!, MX vs. ATV, Red Faction, and Saints Row. THQ also secured exclusive long-term licensing agreements with leading entertainment entities such as Disney, DreamWorks Animation, Nickelodeon, and WWE.

Experiencing financial difficulties marked by declining stock values and increasing debt, THQ filed for Chapter 11 bankruptcy protection in December 2012 and began asset liquidation in January 2013. Numerous key intellectual properties were sold off to other firms, while the remaining workforce was dismissed. In 2014, developer Nordic Games purchased the "THQ" trademark along with certain assets, later rebranding as "THQ Nordic" in 2016 and continuing to manage various THQ franchises under that banner.

Origins and establishment (1990–1999)

THQ Inc. was created by LJN co-founder Jack Friedman in April 1990. The acronym "THQ" stands for "Toy Headquarters". In September 1990, the company acquired New Ventures, a division of Broderbund. The following year, Trinity Acquisition Corp—a special purpose acquisition company listed on NASDAQ—merged with THQ via a reverse merger valued at approximately $33 million, resulting in THQ shareholders owning 51.7% of the combined entity. The company retained the THQ name and adopted the stock ticker "THQI", with Friedman appointed as president. In 1993, THQ purchased Chicago-based developer Black Pearl Software, which was utilized for Sega platform releases, while Malibu Games was used for Nintendo products.

By 1994, THQ had exited the toy market to concentrate exclusively on video games. Around this period, it licensed five titles to Electronic Arts for release on multiple consoles. Friedman departed in 1995 to co-found toy manufacturer Jakks Pacific. At the Winter CES event in 1995, THQ extended its partnership with Electronic Arts to include development for both 16-bit and 8-bit consoles as well as handheld devices. The Black Pearl Software label was designated for 8-bit and 16-bit projects, whereas Kokopeli Digital Studios was introduced to handle 32-bit game development.

In 1997, THQ reincorporated as a Delaware corporation and acquired San Jose-based developer Pacific Coast Power & Light in 1999. In June of that year, THQ entered into a decade-long joint venture equally owned with Jakks Pacific (THQ/Jakks Pacific LLC) to obtain the WWE video game license previously held by Acclaim Entertainment. Starting October 1999, THQ committed to producing and distributing two WWE titles annually.

Also during 1999, THQ secured publishing agreements for Power Rangers video games and licensed British developer Codemasters to distribute their titles within handheld gaming markets.

Expansion and acquisitions (2000–2009)

In February 2000, THQ became the subject of a class action lawsuit due to failure to disclose significant information. Later that year, in September, the company enhanced its in-house development capabilities by acquiring Volition, based in Champaign, Illinois. THQ's roster of internal studios expanded globally to eleven, including notable names such as Relic Entertainment, Vigil Games, Blue Tongue Entertainment, Juice Games, Kaos Studios, and Volition, all focused on creating games for next-generation consoles and PCs. Vigil Games was added to THQ’s portfolio in 2006.

During 2000, THQ collaborated with Fox Interactive to launch titles like Croc for the Game Boy Color. The following year, THQ extended its partnership with Nickelodeon to develop games based on popular franchises such as Rugrats, SpongeBob SquarePants, and Rocket Power, along with licenses for shows including Jimmy Neutron: Boy Genius and The Wild Thornberrys. This pact also encompassed original intellectual properties like Tak and the Power of Juju, facilitating cross-media ventures. In 2004, THQ entered into a multi-platform publishing agreement with MGA Entertainment for the Bratz doll brand.

On May 10, 2007, THQ announced record-breaking fiscal year sales exceeding $1 billion alongside net profits. By March 2008, the company revealed plans to develop the first cheerleading game utilizing the Wii Balance Board. Nevertheless, by November 2008, THQ had shuttered five internal studios: Paradigm Entertainment, Mass Media Inc., Helixe, Locomotive Games, and Sandblast Games.

Facing declining sales in 2009, THQ implemented a strategic initiative aimed at reducing annual expenses by $220 million by 2010 while concentrating on "fewer, better bets." Although the company had posted $68 million in profits and $1 billion in revenue in 2007—placing it close to competitor Activision—several high-budget projects underperformed amid the Great Recession. Its dominance in children’s games tied to Nickelodeon and Pixar franchises diminished as consumers gravitated toward free online gaming. With shares plummeting 86% and market capitalization dropping to $173 million, acquisition interest surfaced.

In March 2009, THQ divested Heavy Iron Studios and Incinerator Studios while seeking a buyer for Big Huge Games, which was sold to 38 Studios in May. In August, THQ purchased Midway Studios San Diego for $200,000; this deal did not include the TNA Impact! title. By December 2009, following resolution of litigation among involved parties, THQ secured an eight-year standalone licensing agreement with the WWE, replacing its former joint venture with Jakks Pacific.

Reorganization and Financial Challenges (2010–2012)

In February 2010, THQ restructured Juice Games and Rainbow Studios into THQ Digital Warrington and THQ Digital Phoenix respectively, leading to a total workforce reduction of 60 employees across US and UK locations.

August 2010 saw the launch of the uDraw GameTablet by THQ—a $70 accessory designed for Nintendo’s Wii that allowed users to draw and interact on TV screens—with intentions for ongoing software releases.

By January 2011, THQ had sold its THQ Wireless division to Swedish firm 24MAS and introduced a new corporate logo. Following the March release of Homefront, the company’s stock value fell by 26%, largely due to unfavorable reviews. In June 2011, THQ closed Kaos Studios—the developer behind Homefront—alongside THQ Digital Warrington.

On July 27, 2011, after disappointing results from Red Faction: Armageddon, THQ discontinued the Red Faction franchise. The following month marked a strategic pivot away from licensed children’s and movie-based titles toward high-quality proprietary intellectual properties; this shift resulted in closures of THQ Studio Australia, Blue Tongue Entertainment, and THQ Digital Phoenix—effectively ending the MX vs. ATV series.

November 2011 brought the release of uDraw for PlayStation 3 and Xbox 360; however, poor sales contributed significantly to THQ’s financial struggles.

In January 2012, THQ exited the licensed children’s game segment to focus on mature core gaming audiences but continued distributing existing titles. The uDraw GameTablet was discontinued by February.

For the fiscal year ending March 31, 2012, THQ reported a net loss of $239.9 million—a steep increase from $136.1 million the previous year. Jason Rubin was appointed president in May 2012.

THQ scheduled a stockholder meeting for June 29 to approve a reverse stock split. In June, it transferred UFC game licensing rights to Electronic Arts. By July 2012, shareholders had approved a one-for-ten reverse share split aimed at preventing NASDAQ delisting.

Bankruptcy and Liquidation, THQ Nordic (2012–2013)

On November 13, 2012, THQ revealed its inability to repay a $50 million loan from Wells Fargo, placing the company on the brink of Chapter 11 bankruptcy. The stock price plummeted from nearly $3 to $1.16 amid $250 million in long-term debt, resulting in delays for key releases Company of Heroes 2 and Metro: Last Light until March 2013. By November 29, THQ collaborated with Humble Bundle to introduce the Humble THQ Bundle, which generated approximately $5 million through nearly 800,000 bundles sold by December 12; THQ President Jason Rubin personally donated $11,050. On December 19, 2012, THQ officially filed for Chapter 11 bankruptcy with plans to sell the company and its assets to Clearlake Capital, with Centerview Partners overseeing the transaction. Skip Paul played a significant role in arranging Clearlake’s stalking horse bid.

Nevertheless, Judge Mary F. Walrath declined this bid and approved an auction of THQ’s individual assets on January 22, 2013. During this auction, the Homefront franchise was purchased by Crytek (which later transferred it to Koch Media), Relic Entertainment along with rights to Warhammer 40,000 games were acquired by Sega, and publishing rights for Evolve and WWE went to Take-Two Interactive. Ubisoft secured THQ Montreal and the rights to South Park: The Stick of Truth, while Koch Media obtained Volition plus rights to Metro and Saints Row. Although Vigil Games and THQ’s publishing division remained under bankruptcy proceedings, all staff were laid off. On January 23, PlatinumGames producer Atsushi Inaba publicly showed interest in acquiring the Darksiders franchise.

On February 26, THQ announced it would auction off remaining franchises—including Darksiders, Homeworld, Red Faction, and Destroy All Humans!—in a court-approved sale scheduled between April 1 and April 15. Simultaneously, servers supporting the 2012 remake of Nexuiz were discontinued. In June 2013, the rights to the Freespace franchise were purchased by Interplay Entertainment.

In April 2013, Nordic Games acquired all remaining THQ franchises and original intellectual properties—excluding Homeworld, which was bought by Gearbox Software, and Drawn to Life, acquired by 505 Games—along with licensed software for $4.9 million. The Nickelodeon game license was obtained by Activision, though it eventually expired; Nickelodeon subsequently licensed titles through various smaller publishers including Nordic.

Creditors initially voiced concerns that the proposed sale disproportionately benefited existing THQ management, including Rubin; however, Judge Walrath dismissed these allegations as unfounded "conspiracy theories," and creditors ultimately cleared management of any misconduct in the finalized liquidation plan.

The dissolution of THQ also affected other developers; notably, British studio Blitz Games Studios shuttered in September 2013 due to financial strains linked to losing THQ as a principal client.

On June 12, 2014, Nordic Games announced it had acquired the THQ trademark, allowing it to publish under the historic name. In August 2016, Nordic Games rebranded itself as THQ Nordic in order to capitalize on the brand’s established recognition.

Development

Name	Location	Date Acquired/Founded	Date Divested	Outcome
Black Pearl Software	Chicago	June 1993	N/A	Declared intent to dissolve in 1997; formally closed by November 2000
Heliotrope Studios	Guilford, Connecticut	August 2, 1996	May 1998	Dissolved following THQ’s acquisition of GameFX
GameFX	Arlington, Massachusetts	May 1, 1998	N/A	Ceased operations by November 2002
Locomotive Games	Santa Clara, California	May 24, 1999	November 3, 2008	Formerly Pacific Coast Power & Light until 2005; shuttered by THQ
Heavy Iron Studios	Los Angeles	September 1999	March 2009	Became an independent entity through spin-off
Genetic Anomalies	Lexington, Massachusetts	December 13, 1999	N/A	Current operational status unspecified
Volition	Champaign, Illinois	August 31, 2000	January 23, 2013	Transferred to Deep Silver amid THQ’s bankruptcy process
Helixe	Burlington, Massachusetts	July 2000	November 3, 2008	Closed by THQ management decisions
Cedar Ridge Construction	Grass Valley, California	May 2001	2001	Integrated into Pacific Coast Power & Light through merger
THQ Digital Studios Phoenix	Phoenix, Arizona	December 21, 2001	August 9, 2011	Renamed from Rainbow Studios in 2010; subsequently closed by THQ
Sandblast Games	Kirkland, Washington	February 2002	November 3, 2008	"Previously known as Cranky Pants Games; terminated by THQ"

|- ! scope="row" | Outrage Games || Ann Arbor, Michigan || || || Shut down by THQ in the second quarter of 2003 |- ! scope="row" | THQ Studio Australia || Brisbane || 2003 || || Closed under THQ’s corporate restructuring |- ! scope="row" | Relic Entertainment || Vancouver || April 2004 || January 2013 || Acquired by Sega during bankruptcy asset sales |- ! scope="row" | Concrete Games || San Diego || September 30, 2004 || January 23, 2008 || Terminated by THQ |- ! scope="row" | Blue Tongue Entertainment || Melbourne || November 17, 2004 || August 9, 2011 || Closed down by THQ |- ! scope="row" | Kaos Studios || New York City || February 3, 2006 || June 13, 2011 || Operations ceased by THQ |- ! scope="row" | THQ Digital Studios Warrington || Warrington || March 6, 2006 (acquisition of Juice Games) || June 13, 2011 || Renamed from Juice Games in 2010; later closed by THQ |- ! scope="row" | Vigil Games || Austin, Texas || March 17, 2006 || January 23, 2013 || Shut down amid bankruptcy proceedings |- ! scope="row" | Incinerator Studios || Carlsbad, California || July 18, 2006 || March 2009 || Spun off to operate independently |- ! scope="row" | Paradigm Entertainment || Dallas || July 25, 2006 || November 3, 2008 || Closed by THQ management decisions |- ! scope="row" | Mass Media Games || Moorpark, California || February 2, 2007 || November 3, 2008 || Operations terminated by THQ |- ! scope="row" | Big Huge Games || Timonium, Maryland || January 18, 2008 || May 27, 2009 || Sold to 38 Studios |- ! scope="row" | Universomo || Tampere || May 2007 || March 2, 2010 || Closure executed by THQ |- ! scope="row" | THQ San Diego || San Diego || August 12, 2009 || June 4, 2012 || Formerly Midway San Diego; shut down by THQ |- ! scope="row" | THQ Montreal || Montreal || October 19, 2010 || January 23, 2013 || Transferred to Ubisoft during bankruptcy asset sales |}

Publishing

Entity	Headquarters	Founded/Acquired	Divestiture Date	Outcome
THQ Entertainment	Kaarst	December 2, 1998	N/A	Originally named Rushware until rebranding in December 2000
THQ Wireless	N/A	May 2001	February 8, 2011	Transferred ownership to 24MAS
ValuSoft	Waconia, Minnesota	July 1, 2002	April 25, 2012	Acquired by Cosmi Corporation
XDG (External Development Group)	N/A	March 2006	N/A	No recorded disposition
Elephant Entertainment	Minneapolis	April 1, 2008	N/A	Continues operation without divestment

External links

Official website