THQ 2005 Annual Report Download - page 53

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30
fiscal 2006. Nintendo recently announced that in fall 2005, they will release the Game Boy Micro, a pocket-
size platform which plays Game Boy Advance games. We believe that sales of this handheld platform will
help sales of our Game Boy Advance games.
Nintendo Dual Screen. Nintendo recently released a new handheld platform, the Nintendo DS portable
game system (“Nintendo DS”). We released Ping Pals for the Nintendo DS in December 2004. As the
installed base of Nintendo DS hardware grows, we expect to bring our market-leading kids and family
brands to the platform, including games based on Disney/Pixar’s The Incredibles, Scooby-Doo!, SpongeBob
SquarePants , Tak. WWE and others . We currently expect to release nine titles for the Nintendo DS in
fiscal 2006.
PlayStation Portable. We expect to release five titles in fiscal 2006 for the PSP system, a handheld
platform which Sony has released in North America and Japan, and has announced it plans to release in
Europe on September 1, 2005. As the installed base of the PSP system hardware grows, we expect to bring
our market-leading kids and family brands to the platform, including games based on Disney/Pixar’s The
Incredibles and SpongeBob SquarePants as well as titles based on our WWE license and our own MX brand.
Wireless Net Sales (in thousands)
Year Ended
March 31,2005% of net sales
Year Ended
March 31,2004% of net sales % change
$24,613 3.3 % $6,860 1.1% 258.8%
Wireless revenues consist primarily of sales of wireless games, ringtones and wallpapers. Through our
controlling interest in Minick, we also derive wireless revenue by providing SMS voting, information and
wireless marketing campaigns.
Wireless net sales increased by $17.8 million during fiscal 2005 compared to fiscal 2004. The increase in
wireless net sales was due to:
•strong sales of games based on major sports leagues, Nickelodeon, and Moto GP;
•our acquisition of the controlling interest in Minick; and
•increased installed base of wireless handsets with gamecapabilities in the wireless gaming market.
We expect wireless net sales to increase in fiscal 2006 asthe installed base continues to grow and we
continue to expand our product offerings.
PC Net Sales (in thousands)
Year Ended
March 31,2005% of net sales
Year Ended
March 31,2004% of net sales % change
$86,667 11.5 % $74,934 11.7%15.7%
Net sales of PC products increased to $86.7 million for fiscal 2005 from $74.9 million infiscal 2004, an
increase of 16%. PC sales in fiscal 2005 were primarily driven by:
•sales of products targeted at the core gamer Full Spectrum Warriorand Warhammer 40,000: Dawn
of War;
•sales of Disney/Pixar’s The Incrediblesand The SpongeBob SquarePants Movie; and
•strong catalog sales.