THQ 2005 Annual Report Download - page 51

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14 new SKUs in fiscal 2005 and 17 new SKUs in the prior fiscal year. A SKU is a version of a title designed
for play on a particular platform.
We expect net sales from PlayStation 2 products in fiscal 2006 to be about equal to net sales in fiscal 2005.
Sony has announced that they plan to launch their next-generation console, the PlayStation 3, in 2006.
Once the PlayStation 3 is launched, we expect sales of games for the PlayStation 2 to decrease as sales of
games for the PlayStation 3increase with the growth of the installed base.
Microsoft Xbox Net Sales (in thousands)
Year Ended
March 31,2005% of net sales
Year Ended
March 31,2004% of net sales % change
$80,623 10.7 % $71,132 11.1%13.3%
Net sales of video games for Xbox increased by $9.5 million for fiscal 2005, as compared to fiscal 2004. Net
sales in fiscal 2005 were driven by:
•sales of original properties including Full Spectrum Warrior, MX v. ATV Unleashed and The Punisher;
•sales of Disney/Pixar’s The Incrediblesand The SpongeBob SquarePants Movie; and
•strong catalog sales.
Net sales in fiscal 2004 were driven by:
•the release of titles based on our three key mass-market brands: Disney/Pixar’s Finding Nemo,
SpongeBob SquarePants: Battle for Bikini Bottom and WWE Raw 2; and
•sales of MotoGP 2 and MX Unleashed.
The increase in net sales for Xbox in fiscal 2005 from fiscal 2004 was primarilyattributable to sales of Full
Spectrum Warrior, partially offset by the release of more games in fiscal 2004. We released 8 SKUs during
fiscal 2005 compared to 16 SKUs during fiscal 2004.
We expect net sales from Xbox to grow in fiscal 2006. We released WWE® Wrestlemania® XX1 for Xbox
in April 2005. In addition, we expect to release Destroy All Humans! and Juiced in the first quarter of fiscal
2006.
Microsoft Xbox 360. We expect to release new titles at or around the launch of the new Xbox console
platform, which Microsoft announced will be launched in North America, Europe and Japan by holiday
2005. As the installed base of the Xbox 360 platform grows, we also expect to bring our market-leading
family brands to the platform, including games based on our licensed properties with Disney/Pixar,
Nickelodeonproperties such as SpongeBob SquarePants, as well as titles based on our WWE license and
our own MX brand.
Nintendo GameCube Net Sales (in thousands)
Year Ended
March 31,2005% of net sales
Year Ended
March 31,2004% of net sales % change
$73,157 9.7 % $ 6 1,356 9.6% 19.2%
Net sales of video games for GameCube increased by $11.8 million for fiscal 2005, as compared to fiscal
2004. Net sales in fiscal 2005 were driven by:
•sales of mass market titles including Disney/Pixar’s The Incredibles, The SpongeBob SquarePants
Movie, and WWE Day of Reckoning;