THQ Sells Budget IP Division ValuSoft

THQ has sold its budget game division, ValuSoft, to the similarly value-focused Cosmi Corporation for an undisclosed amount. The move is part of THQ’s decision to pare down its development to just the strongest and most profitable IPs. THQ said in a statement in January that it planned to reduce its commitment to kids’ boxed games and focus on only its largest titles.

“With the transition of the ‘Value’ PC business to Cosmi, our internal resources are now focused on our core video game portfolio where we can drive the highest quality performance and execution for our games,” THQ president and CEO Brian Farrell said. “This shift also presents a great, new opportunity for ValuSoft and its broad portfolio of products.”

THQ acquired ValuSoft in 2002 in order to tap the growing casual market. But, despite its moderate success in selling $10-$20 games next to check-out counters at Wal-Mart, Best Buy, and Target, ValuSoft doesn’t look like it makes the cut in THQ’s plans to downsize. Its titles could never be considered core or even high-quality, really. Maybe well-branded, or good-enough, or certainly better than Ninjabread Man.

Regardless, Cosmi Corporation has reason to be enthusiastic about the deal. With the addition of ValuSoft, Cosmi is now the largest publisher of retail software, and the second largest publisher
of PC games. “We look forward to integrating ValuSoft’s catalog along with its sales, marketing, and software development team to continue our growth in the ‘value’ retail channel,” Cosmi President Edward Lanchantin said in a statement. “Adding ValuSoft gives us the significant size and scope to better meet the needs of our retailer network and customers.”