THQ 2005 Annual Report Download - page 25

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2
National Basketball Association (“NBA”), including the players of each league. In addition to licensed
properties, we also publish games based upon owned intellectual properties, including Destroy All
Humans™, Juiced™, MX, S.T.A.L.K.E.R.: Shadow of Chernobyl, and Tak™(co-developed with
Nickelodeon).
We develop our games using both internal and external resources. We currently have ten internal
development studios located in the United States, Australia and Canada. We also contract with leading
third-party developers around the world to develop our products for us.
In North America, we market and distribute games directly to leading mass merchandisers, consumer
electronic stores, discountwarehouses and national retail chain stores. Our offices in the United Kingdom,
Australia, France, Germany, Korea and Spain provide a global sales network, delivering products to retail
shelves in more than 75 countries throughout the world. We also market and distribute games and other
content for wireless devices worldwide through major wireless carriers.
We were originally incorporated in New York in 1989 as Trinity Acquisition Corporation, which changed
its name in 1990 to T.HQ, Inc. through a merger with T.HQ, Inc., a California corporation. We were
reincorporated in Delaware in 1997. Our principal executive offices are located at 27001 Agoura Road,
Calabasas Hills, California 91301, and our telephone number is (818)871-5000. Our web site is at
http://www.thq.com.(2)
Narrative Description of Business
Our corporate goal is to expand our market share while increasing profitability. Our business strategy and
a detailed summary of our business operations are detailed below and should be read in conjunction with
our “RiskFactors,” included in Item 7herein.
Strategy
In order to maximize market share and increase profitability, we believe it is important to offer abroad
portfolio of titles for all ages that are playable on all popular platforms. We intend to do this by executing
on the following strategies:
•Increase sales and profits from current mass-market franchises
We have worked to grow and diversify our products targeted at the mass-market by securingkey content
licenses, which will allow us to continue to leverage our family brands with bothnew products and through
the catalog of existing products. In the fiscal year ended March 31, 2005 (referred to as “fiscal 2005”), we
extended our relationship with Pixar Animation Studios (“Pixar”) by entering into a new license with Pixar.
The new Pixar license grants us the exclusive interactive rights to four upcoming Pixar animated feature
films beginning with the first release followingCars, which we are currently developing and is scheduled for
release in spring 2006. In fiscal 2005, we also extended our license agreement with Nickelodeon, which
grants us the exclusive right to continue publishing games based on all existing and future Nickelodeon
animated television and movie properties targeting kids ages 6-14 across all viable game systems through
2010.
In order to increase sales and profits from current brands, our goal is to continue building high quality
products, market them aggressively and shift more development to our internal development studios. In
fiscal 2005, our key Disney/Pixar and Nickelodeon titles were developed by our internal studios.
(2) THQ, THQ Wireless and their respective logos are trademarks and/or registered trademarks of THQ
Inc.