THQ 2005 Annual Report Download - page 52

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29
•sales of original properties including Tak 2: The Staff of Dreams; and
•strong catalog sales, specifically Disney/Pixar’s Finding Nemo and SpongeBob SquarePants:Battle for
Bikini Bottom.
Net sales in fiscal 2004 were driven by:
•sales of key mass market brands: Disney/Pixar’sFinding Nemo, SpongeBob SquarePants: Battle f or
Bikini Bottom and WWE™ Wrestlemania X9®; and
•sales of Tak and the Power of Juju.
The increase in net sales for GameCube in fiscal 2005 was due to increased sales of our three mass market
titles as well as strong catalog sales.
We released 8 SKUs duringfiscal 2005 compared to 11 SKUs during fiscal 2004.
We expect net sales from GameCube products to decrease in fiscal 2006. Nintendo recently announced
that it will release its next-generation console, the Revolution, in 2006. We expect sales for the GameCube
to continue declining as sales of games for the Revolution increase with the growth of the installed base.
Handheld Platforms
Another factor that positively impacted net sales for fiscal 2005 was an increase in sales of video games for
handheld platforms, which increased 37%, to$232.1 million in fiscal 2005 from $169.0 million during fiscal
2004.
Nintendo Game Boy Advance Net Sales (in thousands)
Year Ended
March 31,2005% of net sales
Year Ended
March 31,2004% of net sales % change
$204,348 27.0 % $ 1 62,109 25.3% 26.1%
Net sales of video games for Game Boy Advance in fiscal 2005 were primarily driven by:
•strong sales of Disney/Pixar’s The Incredibles, The SpongeBob SquarePants Movie and
Sonic Advance3;
•strong catalog sales, in particular Disney/Pixar’sFinding Nemo, SpongeBob SquarePants: Battle for
Bikini Bottom and Scooby-Doo! Monsters Unleashed; and
•strong sales of other key titles, such as Finding Nemo: The Continuing Adventures and Tak2: The
Staff of Dreams.
Net sales of video games for Game Boy Advance in fiscal 2004 were primarily driven by:
•Disney/Pixar’sFinding Nemo and SpongeBob SquarePants: Battle for Bikini Bottom; and
•strong sales of Banjo Kazooie, Scooby-Doo!: Mystery Mayhem, Simpsons Road Rage, Sonic Battle and
Tak and the Power of Juju as well as strong catalog sales of Sonic Advance 2.
The increase in sales of video games for Game Boy Advance in fiscal 2005 was primarily attributable to
increased sales of our Disney/Pixar and SpongeBob SquarePants brands as compared to sales of those
brands in fiscal 2004, as well as strong catalog sales in fiscal 2005 as compared to fiscal 2004. These
increases were partially offset by the release of fewer titles in fiscal 2005 as compared to fiscal 2004. We
released 19 SKUs duringfiscal 2005 compared to 33 SKUs during fiscal 2004.
Due to the introduction of two new handheld devices and a reduced SKU count (expected to be 13 infiscal
2006 compared to 19 infiscal 2005), we expect net sales from Game Boy Advance products to decrease in