THQ 2008 Annual Report Download - page 9

The statements contained in this Annual Report on Form 10-K that are not historical facts may be
‘‘forward-looking statements’’ within the meaning of the Private Securities Litigation Reform Act of 1995.
Such statements include, but are not limited to statements regarding industry prospects and future results
of operations or financial position. We generally use words such as ‘‘anticipate,’’ ‘‘believe,’’ ‘‘could,’’
‘‘estimate,’’ ‘‘expect,’’ ‘‘forecast,’’ ‘‘future’’ ‘‘intend,’’ ‘‘may,’’ ‘‘plan,’’ ‘‘positioned,’’ ‘‘potential,’’ ‘‘project,’’
‘‘scheduled,’’ ‘‘set to,’’ ‘‘subject to,’’ ‘‘upcoming’’ and other similar expressions to help identify forward-
looking statements. These forward-looking statements are based on current expectations, estimates and
projections about the business of THQ Inc. and its subsidiaries and are based upon management’s current
beliefs and certain assumptions made by management. Such forward-looking statements are subject to
risks and uncertainties that could cause actual results to differ materially from those expressed or implied
by such forward-looking statements, including, but not limited to, business, competitive, economic, legal,
political and technological factors affecting our industry, operations, markets, products or pricing. 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. Most of the properties and titles referred to in this Annual Report are
subject to trademark protection.
PART I
Item 1. Business
Introduction
We are a leading worldwide developer and publisher of interactive entertainment software for all popular
game systems, including:
• Home video game consoles such as Microsoft Xbox 360, Microsoft Xbox, Nintendo Wii, Nintendo
GameCube, Sony PlayStation 3 and Sony PlayStation 2;
• Handheld platforms such as Nintendo DS, Nintendo Game Boy Advance, PSP (PlayStation
Portable), 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, Cars, Ratatouille and WALL•E; World
Wrestling Entertainment; Nickelodeon properties such as SpongeBob SquarePants, Avatar, and Nicktoons;
Bratz; Warhammer 40,000; and the Ultimate Fighting Championship; as well as others. We also have
licenses to create wireless products based on Disney•Pixar’s Ratatouille and WALL•E as well as Star Wars
and major sports leagues. In addition to licensed properties, we also develop games based upon our own
intellectual properties, including Company of Heroes, DeBlob, Frontlines, MX vs. ATV, Red Faction and
Saints Row.
We develop our products using both internal and external development resources. The internal resources
consist of producers, game designers, software engineers, artists, animators and game testers located within
our internal development studios and corporate headquarters. The external development resources consist
of third-party software developers and other independent resources such as artists. We refer to this group
of development resources as our Studio System.
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