Bad pay/working conditions meant lots of talent churn, they tried to play hardball a little too hard with successful non-owned devs (example: Techland, who made Dead Island 1 and then left the series due to bad proposals from them), 90s nostalgia being okay for remakes but not new titles (BfBB vs Cosmic Shake), their Euro-jank titles just not adopting modern quality/difficulty curve standards (compare Gothic 1 and 2 to Elex 1 and 2, no progress has been made.)
Edit: Also, lack of oversight. There was a lot of cooperation between the divisions, like Saber porting THQ dev stuff or THQ publishing Plaion-developed stuff. But it wasn't mandated from the top, there was no over-arching vision for what the games were supposed to be and the result is a lot of lowest common denominator stuff. What bright spots there are (Saber, Coffeestain, Asmodee) are because of their own drive, not any sort of push for quality or output. The most telling thing to me is that Asmodee (the world's leading modern board game company) was purchased for as much as the entire company ended up being worth a few year or two later. Investors have no interest in a company who's product is random generic stuff. Nobody is going to believe in all of the stuff. It just doesn't make sense to keep it all together.
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