THQ Bankruptcy Cost WWE $45 Million, Could Threaten Future Sports Games
You probably haven’t heard the term unsecured creditor before, but in bankruptcy court, it’s not a good thing. It means that when the assets and cash THQ has are divided up between their creditors, the WWE will be among those in the back of the line trying to get some of their $45 Million back from THQ. Chances are they wont be seeing any of that money ever again. While that money is a drop in the bucket for the massive WWE, it still enough to get them hopping mad, and it’s hard to blame them.
In the past, sports games were printing money, all you had to do was update the year in the title and churn out a very similar game with maybe a few new features. Fans would buy the game earning money for both studio and sport organization. THQ’s recent sports titles floundered, and left them with a large contractual debt to the WWE. While EA is still printing money with the Madden Football series, this could spell trouble for the smaller sports game series.
While much of it will likely be relegated to boring contract negotiations, this could mean that we could see less investment in smaller studios for sports titles. While a smaller studio might make a better product since they have something to prove, Electronic Arts has plenty of cash on hand to cover any flops that happen. After all, they can always just release another Sims expansion.