Why THQ Nordic is buying franchises as it is not tomorrow (and how it survives)



Yesterday we went to bed THK Nordic In the head once more. In his great prejudice, he was able to buy studios and franchise as if there was no tomorrow, and he was preparing for the Apocalypse of his "dockers 3", the Swedes confirmed the purchase of the right of Karmageddon.

It is likely that more than one would come to mind the same thought that was repeatedly with any of the other recent purchases THK Nordic. The closest ones to Goat Simulator, FlatOut and Expedition just a month ago. As a company supported on the pillars of the extinct THC survives on the basis of Buy Games and Second Studies?

Where does the Nordic come?

In spite of the controversial thing that a category called games of second can sound, in fact, we talk about all that tangle of Indices and doubles A This little bit has been almost unbearable since four years ago Nordic games Is made with the THQ brand after his bankruptcy.

But let's go back further to understand how a Swedish company can accept enough cash for such a movement (and all that come back). It touches until 1993 when Nordic games are born as a company Sale of games by mail That, little by little, is coming the world of distribution.

Three years after its start, it has been its first physical store and, with the fashion of this event, it's launched even more complicated, the publication and distribution of games. More or less than the old one Mail center (For years under the umbrella of the range chain) was set to publish games.

THK Nordic buys sagas and studios at a good price and with a solid base of fans and positive reviews behind them.

Aware of how far the business can go, and with good investor support behind, back in 2011 they start to hunt down studios and franchises with a movement that is crowned by the case of THC. As if there were one of the shop shelves balances, they began to take home everything that smells good.

But who in their right mind would buy franchises that have led to bankruptcy or to live with the water to the neck to so many companies? Well, definitely Someone knows what to do with them. His business model is based on this, in approaching bargains from the market at very attractive prices and with a good fan base behind it.

THQ Nordic's business model

THK Nordic Do not buy trips A, but brands and ideas with a previous presence in the market, whose fresh sales are not particularly good. The key lies in the view they awaken in the face of the benefit indexes. If it is cheap, it has a niche behind and enjoys good reviews, It's worth it.

The Secret of THC is to convert € 600,000 into profits of € 20 million.

After that, they do not jump headlong into a sequel (except for rare occasions), but they massage the product based on trying to make the purchase profitable and know exactly what position they occupy in the market today. It's time to put old games Digital and physical markets Where they did not arrive. After that, continue to grow them based on Ports to new platforms, Launching Remissions And new versions or even publish New dlc.

Though the case of Darksiders Is the first to come to mind, first with the revisions of the first two and then with the announcement of the third, the Nordic's own page shows even more clearly the strategy with an even more surprising brand: MX VS ATV.

The game of motorcycles and quads does not seem to be an acquisition to which any entrepreneur would throw himself headlong. Even less knowing that his starting price is too 600,000 € In 2013. less than a million for a game? Who would be interested in something like that?

After four years in which the game was added to new distribution channels, 5 ports were made, two remoders and some DLCs were released, with a total of € 600,000 THK Nordic investment of € 3.600,000. After that, what is once a forgotten brand has now returned to life producing € 30 million in sales and € 20 million in benefits. The idea does not look bad anymore, right?

Based on buying and caring for franchises that apparently did not happen, THK Nordic He managed to make a model that, despite the scanning of its initial idea, was turned out to offer a profitability that step by step allowing the wheels to keep turning. Of course there is a risk behind this great acquisition, but if you purchase 10 franchises at a reduced price and only one of them multiplies your profits by 20, the game is already gone.


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