THQ 2005 Annual Report Download - page 24

1
This Annual Report on Form 10-K contains, or incorporates by reference, certain forward-looking
statements within the meaning of the Private SecuritiesLitigationReform Act of 1995. Suchstatements
include, but are not limited to, (1) projections of revenues, expenses, income or loss, earnings or loss per
share, cash flow projections and other financial items; (2) statements of our plans and objectives,
including those relating to product releases; (3) statements of future economic performance; and
(4) statements of assumptions underlying such statements. We generally use words such as “anticipate,”
“believe,” “expect,” “intend,” “estimate,” “may,” “could,” “project,” “potential,” “plan,” “forecast,”
“future” and similar expressions to help identify forward-looking statements. These forward-looking
statements are subject tobusiness and economic risk, reflect management’s current expectations,
estimates and projections about our business, and are inherently uncertain and difficult to predict. Our
actual results could differ materially. The forward-looking statements contained herein speak only as of
the date on which they were made, and we disclaim any obligation to update any forward-looking
statements toreflect events or circumstancesafter the date of thisAnnualReport. Risksand uncertainties
that may affect our future results include, but are not limited to, those discussed under the heading “Risk
Factors,” included in Item7 herein. All references to “we,” “us,” “our,” “THQ,” or the “Company” in the
following discussion and analysis meanTHQ Inc. and its subsidiaries.
PART I
Item 1. Business
Introduction
We are a leading worldwide developer and publisher of interactive entertainment software for all popular
game systems, including:(1)
•Home video game consoles such as Sony PlayStation 2, Microsoft Xbox, and Nintendo GameCube,
and the next-generation consoles SonyPlayStation 3, Microsoft Xbox 360. We intend to develop
games for the Nintendo Revolution;
•Handheld platforms such as Nintendo Game Boy Advance, Nintendo Dual Screen,PSP™ portable
entertainment system (“PSP system”), wireless devices; and
•Personal computers.
Our titles span a wide range of categories, including action, adventure, fighting, racing, role-playing,
simulation, sports and strategy. We have created, licensed and acquired a group of highly recognizable
brands, which we market to a variety of consumer demographics ranging from products targeted at
children and the mass-market to products targeted at core gamers. Our portfolio of licensed properties
includes the Disney/Pixar properties Finding Nemo, The Incredibles , and Cars, which is expected to be
released in spring2006; Nickelodeon properties such as SpongeBob SquarePants™, Fairly OddParents™
and Jimmy Neutron™; World Wrestling Entertainment™; Bratz™; Power Rangers; Warhammer 40,000® :
Dawn of War™; Marvel’s The Punisher™; Scooby-Doo!™; and Sonic the Hedgehog™; as well as others. We
also have licenses to create wireless products based on Star Wars, the National Football League (“NFL”),
the National Hockey League (“NHL”), Major League Baseball (“MLB”) and the
(1) Nintendo®, Dual Screen, Game Boy® Advance, GameCube® (“GameCube”) and Revolution are
trademarks and/or registered trademarks of Nintendo of America Inc. (“Nintendo”). “PlayStation”
and the “PS” family logo are registered trademarks of Sony Computer Entertainment Inc., and “PSP”
is a trademark of Sony Computer Entertainment Inc. (“Sony”). Microsoft, Xbox® (“Xbox”) and
Xbox 360™ are trademarks and/or registered trademarks of Microsoft Corporation (“Microsoft”).
Microsoft, Nintendo and Sony are referred to herein collectively as the “platform manufacturers” or
the “manufacturers.”