THQ 2004 Annual Report Download - page 52

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Please find page 52 of the 2004 THQ annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

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RISK FACTORS
Our business is subject to many risks and uncertainties which may affect our future financial performance. Some of those important risks and uncertainties
which may cause our operating results to vary or which may materially and adversely affect our operating results are as follows:
• We must continue to develop and sell new titles in order to remain profitable.
• Our inability to identify, license and renew properties upon which our products are based, or properties we license, could harm us.
• We rely on a relatively small number of brands for a significant portion of our net sales.
• We rely on a small number of customers that account for a significant amount of our sales.
• We depend on platform manufacturers’ approvals to continue developing and marketing console titles.
• Unexpected declines in the popularity of platforms could have a negative effect on consumer demand for titles, which could have a material
adverse effect on us.
• If we needed to write down licenses or software development costs below the current recorded value, our results of operations could be adversely affected.
• We rely on external developers for the development of many of our titles.
• Increased foreign operations subject us to different business, political and economic risks.
• Unauthorized use of our intellectual property licenses could harm us
• Defects in our game software could harm our reputation or decrease the market acceptance of our products.
• Competition may lead to reduced sales of our products, reduced profits and reduced market share.
For a discussion of these and other important risk factors, see the heading “Risk Factors” in our Annual Report on form 10-K for the year ended March 31, 2004.