THQ 2006 Annual Report Download - page 40

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32
Nintendo GameCube Net Sales (in thousands)
Year Ended
March 31,2006% of net sales
Year Ended
March 31,2005% of net sales % change
$59,255 7.3% $73,157 9.7%(19.0)%
In fiscal 2006, net sales of video games for GameCube were primarily driven by the release of WWE Day of
Reckoning 2, SpongeBob SquarePants: Lights, Camera, PANTS!, Nicktoons: Unite andThe Incredibles: Rise
of the Underminer, as well as catalog sales. In fiscal 2005, net sales of video games for GameCube were
primarily driven by the release of The Incredibles, WWE Day of Reckoning and The SpongeBob SquarePants
Movie.We released seven and eight new SKUs in fiscal 2006 and 2005, respectively. Net sales decreased by
$13.9million in fiscal 2006 as compared to the prior fiscal year primarily due to:
•lower sales of our fiscal 2006 releases of The Incredibles: Rise of the Underminer and SpongeBob
SquarePants:Lights, Camera, PANTS! as compared to fiscal 2005 releases of The Incredibles and The
SpongeBob SquarePants Movie, both which were released in conjunction with their respective movie
releases;
•lower sales of our fiscal 2006 release of WWE Day of Reckoning 2 , as compared to WWE Day of
Reckoningin the prior fiscal year;
•partially offset by sales of our fiscal 2006 release of Bratz: Rock Angelz with no comparable title in
the prior fiscal year.
We expect net sales from GameCube products to decline infiscal 2007, as compared to fiscal 2006, due to
a reduced SKU count and the upcoming launch of Nintendo’s next-generation console, Wii. We expect
sales of games for GameCube to decline in the future as consumer demand shifts t o video gamesmade for
Wii.
Handheld Platforms
Net sales for handheld platforms increased 16% for fiscal 2006 as compared to the prior fiscal year. We
released 22 and 20 new handheld SKUs in fiscal 2006 and 2005, respectively. Both Nintendo and Sony have
launched new handheld platforms, Dual Screen (“DS”) and PlayStation Portable (“PSP”), respectively.
Consistent with our expectations, net sales of games for those new platforms increased in fiscal 2006, while
net sales of games for Game Boy Advance declined.
Nintendo Game Boy Advance Net Sales (in thousands)
Year Ended
March 31,2006% of net sales
Year Ended
March 31,2005% of net sales % change
$171,477 21.3 % $ 2 04,348 27.0% (16.1)%
In fiscal 2006, net sales of video games for Game Boy Advance were primarily driven by the release of
Bratz: Rock Angelz, SpongeBob SquarePants: Lights, Camera, PANTS! and The Incredibles: Rise of the
Underminer, as well as sales of our Game Boy Advance Double Packs. Game Boy Advance Double Packs
feature two previously released titles on one cartridge, providing us with a way to reintroduce our top
selling mass-market titles. In fiscal 2005, net sales of video games for Game Boy Advance were primarily
driven by the release of The Incredibles, The SpongeBob SquarePants Movie and Sonic Advance 3, as well as
catalog titles. We released 10 and 19 new SKUs in fiscal 2006 and 2005, respectively. Net sales decreased
by $32.9 million in fiscal 2006 as comparedto the prior fiscal year primarily due to:
•lower sales on our fiscal 2006 releases of The Incredibles: Rise of the Underminer and SpongeBob
SquarePants:Lights, Camera, PANTS! as compared to fiscal 2005 releases of The Incredibles and The