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The true state of THQ should be revealed in tomorrow’s earnings call

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For the past several days, numerous reports that paint a very grim picture of the future of THQ started to come out. THQ denied it had cancelled its 2014 releases, but it did decide to stop making kids games based on licensed properties. Yesterday, THQ’s listing on The Nasdaq Global Market was threatened with a more »

Interplay is in financial limbo right now

Interplay has been going through a legal battle with Bethesda for several months over the Fallout MMORPG. We’ve covered this situation in the past, but the gist of it is that Interplay believes it has the rights to make a Fallout MMORPG, but Bethesda begs to differ. This is just a portion of Interplay’s problems. The company is hemorrhaging money right now. At this point, we can’t help but wonder if Interplay is capable of staying afloat as a company.

Activision becoming overly reliant on successful franchises

Activision is one of the biggest and richest videogame developers in the world. Its merger with Blizzard Entertainment has generated an incredible amount of revenue from World of Warcraft subscriptions, in addition to Activision’s own Modern Warfare titles. Activision announced it had sold over 20 million Call of Duty map packs to date. Considering each map pack costs between $10 and $15, Activision has earned at least $200 million from map packs alone. When you add revenue from millions of copies of Modern Warfare 2, you’ll see that Activision needs its own vault to store all its money.

Ubisoft’s Q1 2010-11 financial report overview

Today Ubisoft announced the results of its first 2010-2011 financial quarter. Overall the company earned €160 million ($200 million) in its first quarter. Ubisoft saw a 93% increase in revenue compared to its first quarter in 2009. This is partly due to the success of Splinter Cell Conviction which sold 1.9 million units. Older games such as Assassin’s Creed 2, Just Dance and AVATAR also maintained decent sales throughout the quarter.

GameStop stock drop blamed on Walmart’s discounted game prices

The Dallas Morning News reports that GameStop’s stock dropped substantially Wednesday (December 2, 2009) after Walmart announced decent discounts on some bestselling games and $50 gift cards for Nintendo Wii buyers.

GameStop stock dropped 8.3 percent after to close at $21.87 after Walmart revealed discounts on games including Madden 2010 and Left 4 Dead 2, knocking their price down to $50. The DMN quotes Arvind Bhatia an analyst at Dallas’ Sterne Agee & Leach, saying GameStop is probably not worried.

Electronic Arts lowers its financial forecast, plans to expand Mirror’s Edge and Dead Space

Just before Electronic Arts went on a conference call on December 9, 2008, the company announced it would be “continuing to pursue cost saving initiatives including a reduction of its product portfolio for fiscal year 2010 with additional associated headcount reductions and facility consolidations.”

E.A. CEO, John Riccitiello, was quoted in the announcement saying:

While we saw significant improvement in the overall quality of our key products this year, we are disappointed that our holiday slate is not meeting our sales expectations. Given this performance and the uncertain economic environment, we are taking steps to reduce our cost structure and improve the profitability of our business.

During the conference call, Mr. Riccitiello revealed that 17 games released in 2008…