News of Sony’s financial woes aren’t new with the previous supreme leader of electronics having been in financial straits for a few years now but according to some new research the company may be in more trouble than we originally thought.
No, not the guys from Gearbox, they’re too busy swimming in Borderlands 2 money. No, the outsourced guys who actually made game, TimeGate Studios, has apparently laid off its entire staff.
The Internet is responsible for a lot of things, the decline of print, the increase in information and free access to porn for all.. but the Internet does not only use its power for good, unfortunately there is also a sad side to it and this has reared its head again with yet another huge retailer failing to stay afloat.
On the 20th of December we were all greeted with the news that THQ had officially gone bankrupt but that Clearlake Capital had picked up the companies assets and IP’s and that future development was still on target.
THQ’s been getting quite a lot of bad press at the moment around it’s rumoured imminent closing and that it possibly killed off it’s entire 2014 release slate.
It’s continuously denied these rumours but at the same time it’s share price is tanking badly and bad press isn’t going to help that issue at all and now it’s just got worse.
Last week we posted up the story of an industry insider publicly stating that THQ will be closed or sold before June and during that article I took a look at their stock price and was horrified.
How could a company allow itself to plummet that badly without doing something to resolve the underlying issues?
The studio behind the critically acclaimed LA Noire is facing bankruptcy, according to a report from Kotaku Australia, with studio Head Brendan McNamara looking to merge with another local company, all thanks to recent allegations over tyrannical working conditions, and Rockstar Games publically admitting that they will no longer publish any of their games.
With the economy being what it is, a lot of larger companies are feeling the heat more than most of us may think.
Midway, who has been struggling for a while, filed for Chapter 11 bankruptcy, which means that they want to try and continue but are waiting for permission from the courts. Chapter 7 is the one that you don't want to be filing for, because it's the one that means you are going into liquidation.
Here are some official comments from Midway regarding this whole ordeal:
"We have been focused on realigning our operations and improving our execution, and this filing will relieve the immediate pressure from our creditors and provide us time for an orderly exploration of our strategic alternatives. This Chapter 11 filing is the next logical step in an ongoing process to address our capital structure."