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1
This AnnualReport on Form 10-K contains, or incorporates by reference, certain forward-looking
statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements
include,but are not limited to, (1) projections of revenues, expenses, incomeor loss, earningsorlossper
share, cash flow projections and otherfinancial items; (2) statements of ourplans and objectives,
including those relatingto product releases; (3) statementsof future economic performance; and
(4)statements of assumptions underlying such statements. We generallyuse wordssuch as “anticipate,”
“believe,”“could,” “estimate,” “expect,”“forecast,” “future” “intend,” “may,” “plan,” “positioned,”
“potential,” “project,” “scheduled,” “set to,” “subject to,” “upcoming” and other similar expressions to
help identify forward-looking statements. These forward-looking statements are subject to business and
economic risk, reflect management’s current expectations, estimates and projections about our business,
and are inherentlyuncertain and difficult to predict. Our actualresults could differ materially. The
forward-looking statements containedherein speak onlyas of thedate on which they were made, and we
disclaim any obligationto update any forward-looking statements to reflect events or circumstancesafter
the date of this Annual Report. Risks anduncertainties that may affect our future results include, but are
not limited to, those discussed under the heading“Risk Factors,”included in Item 1A herein. All
references to “we,” “us,” “our,” “THQ,” or the “Company”inthe followingdiscussion and analysis mean
THQ Inc. andits 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 Microsoft Xbox 360, Microsoft Xbox, Nintendo Wii, Nintendo
GameCube, Sony PlayStation3and Sony PlayStation 2;
•Handheldplatforms such as Nintendo Dual Screen, Nintendo GameBoy Advance, PSP portable
entertainment system (“PSP system”), wireless devices; and
•Personal computers.
Our titlesspan a widerange of categories, including action, adventure, fighting, racing, role-playing,
simulation, sports andstrategy. 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 andthe mass market to products targetedat coregamers. Our portfolio of licensed properties
includes theDisney"Pixar properties Finding Nemo,The Incredibles,Cars andRatatouille; World Wrestling
Entertainment®; NickelodeonpropertiessuchasSpongeBob SquarePants™, Avatar ,Barnyardand
Nicktoons;Bratz ™; Warhammer ®40,000™; and the Ultimate Fighting Championship®; as well as others.
We also have licenses to create wireless products based on Disney"Pixar’sRatatouille as well as Star Wars
and major sports leagues. In addition to licensed properties, we also develop games based upon owned
intellectualproperties, including Company of Heroes™, Destroy All Humans! ®Juiced™, MX vs.ATV™,
RedFaction®, Saints Row™and Stuntman®.
(1)Nintendo®, Dual Screen, Game Boy® Advance, GameCube® and Wii are trademarks and/or
registered trademarks of Nintendo of America Inc. (“Nintendo”).“PSP” is atrademark and
“PlayStation” and the “PS” Family logo areregistered trademarks of Sony Computer Entertainment
Inc. (“Sony”). Microsoft, Xbox®, Xbox 360™ and theXbox logos are either registered trademarks or
trademarks of Microsoft Corporation (“Microsoft”) in the U.S. and/or in other countries and are used
under license from Microsoft. Microsoft, Nintendo andSony arereferred to herein collectivelyas the
“platform manufacturers” or the “manufacturers.”