THQ 2006 Annual Report Download - page 41

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33
SpongeBob SquarePants Movie, both which were released in conjunction with their respectivemovie
releases;
•strong prior year performance of Sonic Advance 3 without a comparable game released in fiscal
2006;
•nine fewer SKUs released infiscal 2006 as compared to fiscal 2005 and an overall decline in the
Game Boy Advance market due to the introduction of DS and PSP into the handheld video game
market;
•partially offset by a 21% increase in sales of catalog titles, mainly Game Boy Advance Double
Packs.
We expect net sales from the Game Boy Advance products to decline in fiscal 2007, as compared to fiscal
2006, due to a reduced SKU count as we expand our offerings toDS and PSP.
Nintendo Dual Screen Net Sales (in thousands)
Year Ended
March 31,2006% of net sales
Year Ended
March 31,2005% of net sales % change
$32,855 4.1 % $3,1100.4% 956.4%
In fiscal 2006, net sales of video games for DS were primarily driven by the release of Zoo Tycoon,
SpongeBob SquarePants: Yellow Avenger and The Incredibles: Rise of the Underminer. We released eight and
one new SKUs in fiscal 2006 and 2005, respectively. Net sales increased by $29.7 million in fiscal 2006 as
compared to the prior fiscal year. The increase is due to the increased number of titles released in fiscal
2006 as compared to the prior fiscal year.
As the installed base of DS hardware grows, we expect to continue to bring more titles to the platform,
including our market-leading family brands, games based on Disney/Pixar’s Cars,and titles based on
Nickelodeon properties such as SpongeBob SquarePants and Nicktoons.
PlayStation Portable Net Sales (in thousands)
Year Ended
March 31, 2006% of net sales
Year Ended
March 31, 2005% of net sales % change
$29,406 3.6 % $— —%100.0%
In fiscal 2006, net sales of video games for PSP were driven by the release of WWE SmackDown vs. Raw
2006. We released four and zero new SKUs in fiscal 2006 and fiscal 2005, respectively. As the installed base
of PSP hardware grows, we expect to bring more titles to the platform, including our market-leading family
brands, games based on Disney/Pixar’s Cars,and titles based on our own Juiced brand.
Wireless Net Sales (in thousands)
Year Ended
March 31,2006% of net sales
Year Ended
March 31,2005% of net sales % change
$36,112 4.5% $24,613 3.3% 46.7%
Wireless revenues consist of sales of wireless games and other content such as wireless wallpapers and
ringtones. Through our controlling interest in Minick Holding AG (“Minick”), we also derive wireless
revenue by providing infrastructure services for the delivery of wireless content and entertainment.