THQ 2007 Annual Report Download - page 17

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9
Competition
Thevideo game industry is intensely competitive. It is characterized by the continuous introduction of new
titles andthedevelopmentofnew technologies. Ourbusiness is drivenbyhit titles, whichrequiresus to
investsignificantly in productionandinmarketing.Competition in thevideo games segment is also based
on product quality and features, timing of product releases, brand-name recognition, access to distribution
channels, and effectiveness of marketing and price.
We compete both for licenses to propertiesandthesale of interactive entertainment software with Sony,
Microsoft and Nintendo, each of which is alarge developer and marketer of software for its own platforms.
Each of these competitors also has thefinancial resources to withstand significant price competition and to
implement extensive advertising campaigns, particularly for prime-time television spots. In addition to the
manufacturers, our competitors include publishersand developers of interactive entertainment software,
such as Activision, Atari, Electronic Arts, LucasArts,Namco, Sega,Take-TwoInteractive Software,
Ubisoft, and VivendiGames.
In addition, some of our competitors are very large, diversified corporations that have begun to develop
games basedupon theirown highly recognizablebrands, and, as a result, stand to become more direct
competitors. Disney Interactive Studios recently expanded its internal software game publishing efforts
andViacom has expanded its efforts in interactive entertainment software publishing.
Employees
As of March31,2007, we employed approximately 2,000people, of whom over 640were outside the
United States. We believe that our abilityto attract andretain qualified employees is acritical factor in the
successful developmentof ourproductsand that our future success will depend,inlargemeasure,on our
ability to continue to attractand retain qualified employees. None of ouremployees are represented by a
labor union or coveredbyacollective bargaining agreement and we consider ourrelations with employees
to be favorable.
Financial Information About Geographic Areas
See Item 7 “Management Discussion and Analysis of Financial Condition and Results of Operations” and
Note 18 of notes to consolidated financial statements included in Item 8.
Available Information
We file annual, quarterly and current reports, proxy statementsand other information with theSecurities
and Exchange Commission (“SEC”). Our SECfilings, including our annual report on Form 10-K,
quarterly reports on Form 10-Q, current reports on Form 8-K, and any amendments to those reports filed
or furnished pursuant to Section 13(a) of the Exchange Act are available to the public free of chargeover
the internet at ourwebsiteathttp://www.thq.com or at the SEC’s web siteat http://www.sec.gov. Our SEC
filings will be available on ourwebsite as soon as reasonably practicable after we have electronically filed
or furnished themto theSEC. Information contained on ourwebsite is not incorporated by reference into
this annual report on Form 10-K.You mayalso read andcopyany materials we file with theSEC at the
SEC’s Public Reference Room at 100 F Street, NE, Room 1580, Washington D.C. 20549. You may obtain
information on the operation of thePublic Reference Room by calling theSEC at 1-800-SEC-0330 or on
the internet at http://www.sec.gov/info/edgar/prrrules.htm. You can view our Code of Business Conduct
and Ethics, our Code of Ethicsfor Executive Officersand Other Senior Financial Officers and the charters
for each of our committees of the Board of Directors free of charge on the corporate governance section of
our website.