14 DAY TRIAL // The game industry is clearly in a phase where consolidation is very important. Late last year, we heard that Activision was merging with Blizzard, well, technically with the games division of Vivendi, of which Blizzard is the most important component. Earlier this year we witnessed the launch of an offer by Electronic Arts to take over Take Two. Only today we reported that Rockstar has bought up Mad Doc.
In this climate of competition, where big developers and publishers, with pockets full of cash, are watching for opportunities to take over smaller firms, THQ has until now kept a very low profile. The company publishes very well known and successful franchises, like the Warhammer series from Relic or its own Saints Row games, thinks that it's a good idea to buy experienced developers but that a company can also grow on its own strength, without making any acquisitions.
Brian Farrell, who is the Chief Executive at THQ, stated: "We are seeing some opportunities in the marketplace given the two transactions going on," but refused to comment on specific intentions. In January, THQ snapped up Big Huge Games, the studio that created Rise of Nations, and put them to work on a brand-new RPG. Elephant Games is also becoming an internal studio at THQ, focused on creating casual and player-friendly games. But none of these purchases is on the scale of what Electronic Arts is trying to do with Take Two.
Still, an important announcement from THQ could come at any time, Farrell says. In his view, the activity on the market "It's going to create some opportunities because we are actively looking at every developer, every license out there and with our size now we can be more aggressive than larger, slower firms."
THQ shares have risen by 23 percent over the past month on the back of acquisition and expansion announcements, but its stock value is now listed a full 35 percent lower than it was at the same time last year.