THQ 2008 Annual Report Download - page 46

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As the installed base of PSP hardware continues to grow, we expect to continue to bring more titles to the
platform.
Wireless Net Sales (in thousands)
Year Ended Year Ended
March 31, 2008 % of net sales March 31, 2007 % of net sales % change
$19,751 1.9% $26,467 2.6% (25.4)%
Wireless net sales consist of sales of wireless games and other content such as wireless wallpapers and
ringtones. Prior to December 1, 2006 we also derived wireless revenue by providing infrastructure services
for the delivery of wireless content and entertainment through our controlling interest in Minick
Holding AG (‘‘Minick’’).
In fiscal 2008, wireless net sales were primarily driven by games and other content based on Worms,
Star Wars and major sports leagues. Wireless net sales decreased by $6.7 million in fiscal 2008 as compared
to fiscal 2007 primarily due to fiscal 2007 including revenue from our controlling interest in Minick, which
was sold in December 2006.
We expect wireless net sales to increase in fiscal 2009, as compared to fiscal 2008.
PC Net Sales (in thousands)
Year Ended Year Ended
March 31, 2008 % of net sales March 31, 2007 % of net sales % change
$94,264 9.1% $149,546 14.6% (37.0)%
In fiscal 2008, net sales of video games for PC products were primarily driven by sales of our owned
intellectual property, Company of Heroes: Opposing Fronts, sales of the Real-Time Strategy game
Warhammer 40,000: Dawn of War—Soulstorm, and sales of our catalog titles. We released eight and
nine new titles in fiscal 2008 and fiscal 2007, respectively. Net sales decreased by $55.3 million in fiscal 2008
as compared to fiscal 2007 primarily due to the following:
• lower sales from two of our standalone expansion packs, Company of Heroes: Opposing Fronts and
Supreme Commander: Forged Alliance, in fiscal 2008, as compared to sales of the original titles in
fiscal 2007, Company of Heroes and Supreme Commander, respectively, both with premium
PC pricing,
• the deferral of revenue from sales of Frontlines: Fuel of War (see Critical Accounting Estimates for
information regarding our revenue recognition policies), and
• the release of one fewer title in fiscal 2008 as compared to fiscal 2007, partially offset by an increase
in sales of our catalog titles in fiscal 2008 as compared to fiscal 2007.
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