THQ Nordic AB (publ) Acquires Gunfire Games: Investor Presentation

Key insights

4 slides

New footprint

THQ Nordic AB has acquired Gunfire Games, establishing its first US development presence.

The acquisition of the Austin-based studio marks THQ Nordic's initial owned development footprint in the United States.

Investment return

The acquisition is projected to be recouped within three to four years.

It also includes long-term savings on royalty and development costs.

Like buying a rental property that pays for itself over a few years through rent and avoided fees.

Recoupment target. The acquisition is projected to be recouped within three to four years through immediate cash flow from existing IP, including 'Remnant: From the Ashes', and reduced royalty and development costs.

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Summary

THQ Nordic AB has finalized the acquisition of Gunfire Games, an Austin-based studio recognized for its expertise in action-adventure titles and virtual reality development. This strategic move establishes THQ Nordic’s first owned development footprint in the United States, specifically within the Austin gaming hub. The acquisition aims to integrate a team with over a decade of collaborative experience, leveraging their proven track record in both original intellectual property and established franchises, most notably the Darksiders series.

The financial rationale for the acquisition centers on the expectation that the investment will be recouped within three to four years. By bringing the studio in-house, THQ Nordic anticipates immediate cash flow from existing intellectual property, such as the title Remnant: From the Ashes, alongside long-term savings on royalty and development costs. Gunfire Games will maintain its operational independence and creative freedom, ensuring the studio can continue its established collaborations with other publishers while focusing on the development of high-quality, top-tier gaming experiences.

Founded in 2014 by David Adams, Gunfire Games brings a portfolio of seven released titles to the THQ Nordic ecosystem, including award-winning VR projects like Chronos. The studio’s management team remains strongly incentivized to execute the company’s growth strategy. This acquisition serves to bolster THQ Nordic’s internal development capabilities, combining the studio’s proficiency in RPG mechanics and VR innovation with the parent company’s broader publishing and distribution infrastructure. The deal reflects a broader industry trend of consolidating experienced, independent development talent to secure reliable pipelines of high-performing, multi-platform content.