The Inside Story of How THQ Went Bankrupt and Lost WWE Games

As a life-long gamer and WWE fan, THQ‘s crashing downfall has always greatly saddened me. THQ had been the steward of the hugely popular WWE wrestling video game franchise for over a decade. But financial blunders led the company to declare bankruptcy in 2012, resulting in the loss of its most prized asset – the rights to make WWE games.

THQ‘s Long History with WWE Games

THQ was the publisher behind every major WWE wrestling video game dating back to 2000 with the release of WWF SmackDown on Playstation. After gaining the WWE license in the late 90s, THQ partnered with developers Yuke‘s to produce a new smash hit wrestling franchise.

The games mixed wrestling action with surprisingly deep storytelling and gameplay. And THQ found massive financial success – the series reportedly sold a staggering 68 million units over 10+ iterations.

THQ‘s Downward Financial Spiral Begins

While the WWE games remained popular throughout the 2000s, storm clouds were brewing. Starting in 2008, THQ posted net losses as revenues declined sharply. High development and marketing costs were catching up to the company. And the global financial crisis made matters worse.

THQ took on more and more debt to keep operations running. They even sold off development studios and intellectual properties to generate quick cash. But nothing seemed to work long term, and by 2012 THQ was bleeding money to the tune of a $243 million net loss. Bankruptcy was inevitable for THQ…

WWE License Up for Grabs in THQ‘s Bankruptcy Auction

With bankruptcy court proceedings underway, THQ looked for buyers. Most intriguing was that suitors could bid on individual THQ assets – including the WWE license. THQ executives even highlighted this crown jewel offering to attract buyers.

Major publishers like Take-Two, EA, and Ubisoft expressed interest. Most in the gaming industry expected EA to place the winning bid, given their sports gaming dominance. But in the end, Take-Two snapped up the WWE rights for $15 million. It was a shocking twist…

WWE Gamers Worry About Future of Franchise

As a hardcore WWE gamer, this news initially terrified me. Our beloved wrestling franchise was now in the hands of Take-Two, parent company of 2K Sports. Would they understand what makes these games so special? Could they capture that magic?

Many gaming forums lit up with anxious conversations. "They‘ll just copy-paste NBA 2K gameplay!" cried some fans. "Relax, 2K can do this right," assured others. There was universal sadness that the mighty THQ would no longer guide the franchise they built.

2K wasted no time revamping WWE games in THQ‘s absence. They partnered with developer Yuke‘s to rapidly publish follow-up title WWE 2K14, generally considered a polished effort. And 2K continues publishing new WWE games annually to this day.

Still, many "old school" gamers feel the series pales in comparison to beloved PS2-era THQ titles like SmackDown: Here Comes the Pain. Most recent WWE games have middling critic reviews and fan reception compared to "the good old days" under THQ in the early 2000s.

But in truth, THQ‘s financial mismanagement had sealed their fate long before the bankruptcy auction. Their slow descent into debt and losses year-over-year had one grim outcome – losing the WWE gaming crown jewel that had fueled their rise. THQ‘s failure remains a sobering reminder of prudent money management, even when flying high.

As THQ alumni reflect on what went wrong, WWE gamers are left to wonder – could THQ still be guiding the franchise to glory today if not for their business blunders? It‘s one of history‘s great what-ifs for wrestling fans…