THQ 2008 Annual Report Download - page 43

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Console Platforms
Net sales for console platforms increased by 3% in fiscal 2008 to $568.5 million from $549.7 million in
fiscal 2007. In fiscal 2008, sales of games for the Sony PlayStation 2 (‘‘PS2’’) constituted 44% of our sales
for console platforms, down from 55% of total console sales in fiscal 2007, while sales of games on the
Sony PlayStation 3 (‘‘PS3’’) and Nintendo Wii (‘‘Wii’’) climbed from approximately zero and 5%,
respectively of total console sales in fiscal 2007 to 15% and 16%, respectively in fiscal 2008. We released 40
and 31 new titles for console platforms in fiscal 2008 and fiscal 2007, respectively.
Microsoft Xbox 360 Net Sales (in thousands)
Year Ended Year Ended
March 31, 2008 % of net sales March 31, 2007 % of net sales % change
$129,483 12.6% $134,908 13.1% (4.0)%
In fiscal 2008, net sales of video games for Xbox 360 were primarily driven by sales of
WWE SmackDown vs. Raw! 2008, and sales of games based on our owned intellectual properties, including
MX vs. ATV Untamed, Stuntman: Ignition and Juiced 2: Hot Import Nights. We released 10 and five new
titles in fiscal 2008 and fiscal 2007, respectively. Although we released five more titles in fiscal 2008 as
compared to fiscal 2007, net sales decreased by $5.4 million primarily due to the following:
• the deferral of revenue from sales of Frontlines: Fuel of War (see Critical Accounting Estimates for
information regarding our revenue recognition policies),
• fiscal 2008 net sales included Stuntman: Ignition and Juiced 2: Hot Import Nights, both of which had
a high rate of sales returns and allowances and underperformed relative to our expectations, and
• fiscal 2007 included the launch of our owned intellectual property Saints Row, which had premium
pricing and sold well over a million units.
Microsoft Xbox Net Sales (in thousands)
Year Ended Year Ended
March 31, 2008 % of net sales March 31, 2007 % of net sales % change
$2,278 0.2% $27,476 2.7% (91.7)%
In fiscal 2008, net sales of video games for Microsoft Xbox (‘‘Xbox’’) were primarily driven by sales of our
catalog titles. We released one and three new titles in fiscal 2008 and fiscal 2007, respectively. Net sales
decreased by $25.2 million in fiscal 2008 as compared to fiscal 2007 primarily due to consumer demand
shifting to games for Microsoft’s current generation console, Xbox 360.
Nintendo Wii Net Sales (in thousands)
Year Ended Year Ended
March 31, 2008 % of net sales March 31, 2007 % of net sales % change
$91,431 8.9% $30,025 2.9% 204.5%
In fiscal 2008, net sales of video games for Wii were primarily driven by sales of WWE SmackDown vs. Raw!
2008, as well as sales of Ratatouille and Cars 2: Mater-National. We released 10 and four new titles in fiscal
2008 and fiscal 2007, respectively. Net sales increased by $61.4 million in fiscal 2008 as compared to fiscal
2007 primarily due to the following:
• the release of WWE SmackDown vs. Raw! 2008 in fiscal 2008 with no WWE title released on Wii in
fiscal 2007,
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