"THQ won't be around in six months." So spake Strauss Zelnick, CEO of Take-Two. THQ is known in large part for licensed properties, such as film, WWE and UFC titles. Licensing properties means you have to pay for them, which consequently cuts into your bottom line, and that is the core of Zelnick's criticism of THQ's business model. But he doesn't stop there:
"The most important difference is quality. Take-Two has the highest quality ratings among third-party publishers, according to Metacritic and most people in the industry. Quality really, really, really matters. THQ has had some good games, but their quality levels aren't even remotely ... the quality hasn't measured up."
Regardless of the smack-talk, THQ has been in trouble for some time now. Reports show that in 2007 the company was worth $2 billion USD, whereas today it's worth $35 million. The company has blamed many of its woes on it's under-performing uDraw and children's gaming division. THQ has also closed six of its eleven development studios - surely a sign that something's amiss.
Yesterday, THQ's VP of corporate communications responded to the statements from Take-Two:
"Obviously, Mr. Zelnick's perception of THQ is outdated and inaccurate. His comments are irresponsible and false. Perhaps he would be better off commenting on his own business."
We'll have more for you as it comes.