THQ 2009 Annual Report Download - page 5
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First. We plan to build on existing franchises and launch one-to-two new titles targeted to
the core gamer each year. Our owned intellectual property Saints Row and our long-term
40,000 provide key pillars of our core gamer portfolio
and we plan to sequel and extend these franchises for many years to come. To date, we have
shipped nearly 5 million units of our Saints Row franchise and more than 4.5 million units of
our Warhammer 40,000 franchise. These results demonstrate that when we focus, build quality
games, market them aggressively and launch them in appropriate windows, we are successful.
in scal 2010. In addition, we plan to release two
, in scal 2011.
Second. We are the leaders in the ghting category and we are expanding this industry
leadership. We are very excited about the addition of the UFC franchise to our portfolio.
On May 19, 2009, we launched
success. We expect our UFC games to be a key driver of net sales for many years to come
as we build this brand by enhancing online features, entering new geographic
markets and adding gaming platforms.
multi-million unit seller for THQ. In scal 2009, we shipped more than 4.5 million units of
title. In March of 2009, we launched a successful new
.
scheduled for release this holiday season, with brand new customization features.
Third. We are reinvigorating our kids portfolio. In addition to our Disney•Pixar and
Nickelodeon games, we plan to launch games based on exciting new franchises this scal
year with and next scal year with DreamWorks Animation’s
. Our rst games based on
are scheduled to ship this holiday season and we expect this to be an annual franchise for
several years to come. Our strategy for our kids business includes aggressively managing
our development and marketing costs to improve protability in this category.
Fourth. We plan to build on our already protable mass appeal and family game franchises.
, our latest installment of the industry’s
best-selling off-road racing game, in scal 2010. To date, we have shipped more than
7.5 million units of this franchise. In addition, we have several strong franchises targeted
to consumers on the Nintendo platforms. Our fiscal 2009 revenues on the Wii nearly
doubled as a percent of net sales to 17% from 9% a year ago, driven largely by the success
. For scal 2010, we plan to release new intellectual property
the Wii. We also plan to bring the successful Drawn to Life
the first time and to launch new fitness games based on The Biggest Loser television
series. Going forward, we intend to continue to leverage proven franchises and introduce
new casual games at both full and budget price points on the popular Nintendo platforms.
Fifth. We view the emerging online gaming market as a solid long-term opportunity for
THQ. We plan to extend our key franchises online, rst in scal 2010 with Company of
Heroes® Online™, in conjunction with leading Chinese games operator Shanda Interactive
Entertainment, and we look forward to its commercial release later this scal year. Other
brand extension initiatives include our WWE online game being developed in Asia and
our Warhammer 40,000 Massively Multiplayer Online (MMO) game being developed at
our Vigil Games™ studio. In addition to extending our current franchises online, we are
exploring new online game concepts and models such as our new casual MMO,
Dragonica™ Online, which is the rst game under our THQ•ICE joint venture and is
scheduled for release in North America this fall.
In summary, we have quickly realigned our business, and have made strong progress in
our ve point product strategy that we expect will drive THQ’s net sales for years to come.
With the combination of a more focused and competitive product line, a more rigorous
product quality approach, and a more efcient cost structure, we have positioned THQ to
return to protability and to generate positive cash ow in scal 2010. In addition, we
have a strong Studio System and we are investing in the brands and games with the highest
potential to drive THQ’s long-term protable growth.
Our entire organization is focused on executing on this strategy. I am condent that with
strong franchises and the support and commitment of our dedicated and hard working
employees, we will accomplish our goals.
Sincerely,