Sunday , October 2 2022

Why THQ Nordic buys franchises as if it were not tomorrow (and how it survives)


Yesterday, we went to bed with them THQ Nordig in the head again. In his great honor that has led to the purchase of studios and franchises as if it were not tomorrow, and he was preparing for his "Apocalypse" Darksiders 3, he confirmed that he bought the Carmageddon rights.

It is very likely that more than one would come to think again the same idea that was mentally replicated with any of the other recent purchases of THQ Nordig. Those closest to Goat Simulator, FlatOut and Expedition a few months ago. How a company supported on the disappeared THQ pillar survives on the basis Buying games and second studies?

Where does THQ Nordic come from?

Despite the awesome thing that a category of the second-name games can sound, in fact, we talked about all the cuts of India to double A which has just been absorbed for almost four years ago almost anonymous Nordic Games have done with the brand THQ after its bankruptcy.

But let's go back a bit to understand how Sweden can lose enough money for such a move (and all those that have come to the back). It's touched until 1993, when Nordic Games were named as a company selling games through the post that little bit goes into the world of distribution.

Throughout its origins, it had its first physical storage, and with the harvest of that adventure, it will be launched to another even more complicated, publishing and distributing games. More or less as if old Post (for years under the GAME chain umbrella) to announce games.

THQ Nordic buys sagas and studios at a good price and with a firm base of supporters and positive reviews behind them.

Be aware of how far the business can go, and with the support of good investors behind, back in 2011 they start a studio hunt and free franchises with a movement that is coronated by a THQ reduction. As if one of the shop shelves balances, they start to take everything that's good at home.

But who in their right minds would be to buy franchises that have led to bankruptcy or to live with the water to the neck for so many companies? Well, definitely someone who knows what to do with them. Its business model has basically been based on that, in arriving at market deals at very attractive prices and with a good supporter base behind it.

THQ Nordic business model

THQ Nordig Do not buy triplexes A, but brands and ideas with previous presence in the market whose recent sales have not been particularly good. The key lies in the opinion that they wake up in the face of the benefit indexes. If it's cheap, it has a note behind it and enjoys good reviews, it's worth it.

THQ secretary is to convert a purchase of 600,000 euros in profit of 20 million euros.

After that, they do not jump rapidly to sequence (except at rare times), but they massage the products acquired based on trying to make the purchase profitable and know exactly what a situation they occupy in the market today. It's just adding old games to digital and physical markets where they have not arrived. After that, continue to grow based on ports to new platforms, launch profiles and new or even publishing versions New DLC.

Although there is a case Darksiders Here's the first to come to mind, first with the restart of the first two and then with the third announcement, a Nordic THQ page itself even shows even more clearly the strategy with a brand more surprise: MX vs. ATV.

The game of motorcycles and quads does not seem to be an asset that any entrepreneur would throw it strongly. Even less know that her starting price is 600,000 euros in 2013. Less than one million for a game? Who would be interested in something like that?

After a four-year period the game is added to new distribution channels, 5 ports are made, two recorders and several DLCs are released on that 600,000 euro, THQ Nordic adds an investment of 3.6 million euros . After that, what was once a forgotten brand has now returned to life generating 30 million euros in sales and 20 million euros in benefits. The idea does not look bad anymore, right?

Based on buying and looking after a non-future franchise, THQ Nordig it has managed to create a model that, despite the first idea of ​​its initial idea, has turned out to offer step-by-step profitability allowing the wheel to turn. Obviously, these large-scale acquisitions are at risk, but if you buy 10 franchises at a discounted price, and only one of them multiplies by 20, & # 39; r play has gone perfect.

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