THQ’s stock drops 26% after the bad Homefront Reviews
THQ has been putting all of their eggs in one basket with Homefront. Homefront is one of the most expensive projects released by THQ to date, and received the largest number of pre-orders of any title in the firm’s history. Trying to recover from the downfall, THQ is wants to come back and generate more sales. Homefront has been in gaming magazines and other game related websites for awhile. With massive hype before the launch, Homefront is expected to sell really well. Of course the goal wasn’t to beat Call of Duty’s sales, but at least 2 million to break even.
THQ stock fell approximately 26 percent to $4.40 per share as of the close of the Nasdaq yesterday evening. In this industry 80 is considered the minimum a games aim to be. According to the LA Times, reviews are ranging anywhere from 50 to 93, with nine of the 16 reviews at 80 or above. With the review scores all over the web are less than average, shareholders got scared and started trading the shares tremendously. Just how much you ask? The trading market saw an incredible 6.9 million shares of THQ stock exchanged. This is more than four times the daily average! In 2010 the 52-week high was $8.27, reached in April 2010. Historically the stock reached an all time high in 2007 at $36.16. With this news at hand CEO Brian Ferrell commented on the situation.
“It’s a mass market title, let’s see what players think.” - CEO Brian Farrell
Bottom Line: The review scores of Homefront, has hurt THQ’s stock price. But don’t be ignorant, and judge the game by its cover. Rent it and try it for yourself.
- Source: Gamersleak.com