THQ 2010 Annual Report Download - page 10

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Product’s
JEOPARDY! and Wheel of Fortune , as well as games based on our owned intellectual properties,
including de Blob and Drawn to Life.
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, voice-over actors and
composers. We refer to this group of development resources as our Studio System.
Our global sales network includes offices throughout North America, Europe and Asia Pacific. In the U.S. and
Canada, we market and distribute games directly to mass merchandisers, consumer electronic stores,
discount warehouses and other national retail chain stores. Internationally, we market and distribute games
on a direct-to-retail basis in the territories where we have a direct sales force and to a lesser extent, in the
territories where we do not have a direct sales force, third parties distribute our games. We also globally
market and distribute games digitally via the Internet and through high-end wireless devices, such as the
iPhone, iTouch and iPad.
We were originally incorporated in New York in 1989 as Trinity Acquisition Corporation, which changed its
name in 1991 to T.HQ, Inc. following a merger with THQ, Inc., a California corporation. We were
reincorporated in Delaware as THQ Inc. in 1997. Our principal executive offices are located at 29903 Agoura
Road, Agoura Hills, California 91301, and our telephone number is [phone]. Our Internet address is
http://www.thq.com.
Fi scal Periods
Our fiscal year ends on the Saturday nearest March 31st. For simplicity, all fiscal periods are presented or
referenced as ending on a calendar month end. The fiscal year ending March 31, 2011 and the fiscal years
ended March 31, 2010, 2009 and 2008 contain the following number of weeks:
Fiscal
Period
Number of
Weeks
Fiscal Period End Date
Year ending March 31, 2011 (“fiscal 2011”) .......................................... 52 weeks April 2, 2011
Year ended March 31, 2010 (“fiscal 2010”)........................................... 53 weeks April 3, 2010
Year ended March 31, 2009 (“fiscal 2009”)........................................... 52 weeks March 28, 2009
Year ended March 31, 2008 (“fiscal 2008”)........................................... 52 weeks March 29, 2008
Changes to our Operating Struc ture and S t rategy in Fis cal 2010
During the last two fiscal years, we have restructured our organization in order to support our more focused
product strategy. This strategy consists of the following operating goals:
1. develop a select number of high quality owned intellectual properties targeted at the core gamer
each year;
2. extend our leadership in fighting games;
3. reinvigorate our kids portfolio and improve profitability in our kids business;
4. build our portfolio of casual games that appeal to a broad gamer demographic; and
5. embrace digital integration and extend our brands to online gaming markets.
During fiscal 2010, we restructured our organization into three business units—Core Games; Kids, Family and
Casual Games; and Online Games. Each business unit operates globally with dedicated game development
and marketing teams. We also created our Global Publishing unit, which operates in three regions—North
America, Europe and Asia Pacific—and is responsible for global distribution and sales of our products.
Core Games
Our Core Games group oversees the production and marketing of action, fighting, racing, shooter and
strategy games primarily targeted to avid or “core” gamers. The THQ Core Games franchise portfolio includes
games based on popular fighting brands such as UFC and WWE; racing games based on our MX vs. ATV