THQ 2006 Annual Report Download - page 9

1
This Annual Report on Form 10-K contains, or incorporates by reference, certain forward-looking
statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements
include, but are not limited to, (1) projections of revenues, expenses, income or loss, earnings or loss per
share, cash flow projections and other financ ial items; (2) statements of our plans and objective s,
including those relating to product releases; (3) statements of future economic performance; and
(4) statements of assumptions underlying such statements. We generally use words such as “anticipate,”
“believe,” “could,” “estimate,” “expect,” “forecast,” “future” “intend,” “may,” “plan,” “positioned,”
“potential,” “project,” “scheduled,” “setto,” “subjectto,” “upcoming” and other similar expressions to
help identify forward-looking statements. These forward-looking statementsare subject to business and
economic risk, reflect management’s current expectations, estimates andprojections about our business,
and are inherently uncertain and difficult to predict. Our actual results could differ materially. The
forward-looking statements contained herein speak only as of the date on which they were made, and we
disclaim any obligation to update any forward-looking statements to reflect events or circumstances after
the date of this Annual Report. Risks and uncertainties that may affect our future results include, but are
not limited to, those discussed under the heading “Risk Factors,” included in Item 1A herein. All
references to “we,” “us,” “our,” “THQ,” or the “Company” in the following discussion and analysis mean
THQ Inc. and its subsidiaries.
PART I
Item 1. Business
Introduction
We are a leading worldwide developer and publisher of interactive entertainment software for all popular
game systems, including:(1)
•Home video game consoles such as Sony PlayStation 2, Microsoft Xbox, and Nintendo GameCube,
and the next-generation consoles SonyPlayStation 3, Microsoft Xbox 360 and Nintendo Wii;
•Handheld platforms such as Nintendo Game Boy Advance, Nintendo Dual Screen, PSP portable
entertainment system (“PSP system”), wireless devices; and
•Personal computers.
Our titles span a wide range of categories, including action, adventure,fighting, racing, role-playing,
simulation, sports and strategy. We have created, licensed and acquired a group of highly recognizable
brands, which we market to a variety of consumer demographics ranging from products targeted at
children and the mass-market to products targeted at core gamers. Our portfolio of licensed properties
includes the Disney/Pixar properties Finding Nemo, The Incredibles, and Cars, (which is expected to be
released globally beginning in North America in June2006); World Wrestling Entertainment®;
Nickelodeon properties such as SpongeBob SquarePants™, Avatar, Fairly OddParents™ and Nicktoons;
Bratz™; Power Rangers; Warhammer® 40,000; and Scooby-Doo!™; as well as others. We also have
licenses to create wireless products based on Star Wars and major sports leagues. In addition to licensed
properties, we also publish games based upon owned intellectual properties, including Company of Heroes,
Destroy All Humans!™, Juiced™, MX and Saints Row™.
(1) Nintendo®, Dual Screen, Game Boy® Advance, GameCube® (“GameCube”) and Wii are
trademarks and/or registered trademarks of Nintendo of America Inc. (“Nintendo”). “PlayStation”
and the “PS” family logo are registered trademarks of Sony Computer Entertainment Inc., and “PSP”
is a trademark of Sony Computer Entertainment Inc. (“Sony”). Microsoft, Xbox® (“Xbox”) and Xbox
360™ are trademarks and/or registered trademarks of Microsoft Corporation (“Microsoft”).
Microsoft, Nintendo and Sony are referred to herein collectively as the “platform manufacturers” or
the “manufacturers.”