Reverse splits almost always result in investors losing money, since the share price tends to drop almost immediately following. But if investors are still hanging on to their THQ shares, they aren't counting on much from THQ anyhow. Reverse-splits are a last-ditch effort. They don't attract investors. They only delay the inevitable.
"not really the same value.. as the new stock will have further to fall and will have less upside."
I hate to say but you're wrong on this point. The new stock will have further to fall but CAN fall the exact same percentage points to the lower levels, hence why the number of shares have been reduced. example: 50% of 50cents is 25 cents = 50% of 5 dollars is 2.50 dollars. See that, 50% for both scenarios and the ONLY THING that changes is the share number. You're going after a myth that because there is a higher dollar value, there are larger percentage changes to be made. Also, "less upside": both stocks have the number infinity to reach in numbers. There is always infinite upside available so you're wrong there too.
The only truth about your statement is that companies tend to fall back under a dollar even after a reverse split because they have to suck that bad in order to need this split to go over 5 dollars.
50% of something = 50% of the exact same thing with equal value(shares)
1000 shares at $0.50 value drops 50% = 100 shares at $5 value drops 50%