THQ 2010 Annual Report Download - page 16

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8
more than 10% of the Company’s consolidated net sales for fiscal 2010. A substantial reduction in
purchases, termination of purchases, or business failure by any of our largest customers could have a
material adverse effect on us.
Competi tion
As a publisher of interactive entertainment software, we consider ourselves to be part of the entertainment
industry. At the most fundamental level, our products compete with other forms of entertainment, such as
motion pictures, television, music, Internet and online services for the leisure time and discretionary spending
of consumers. Our primary competition for sales of video games comes from Microsoft, Nintendo and Sony,
each of which is a large developer and publisher of software for its own platforms, as well as other publishers
and developers of interactive entertainment software, such as Activision/Blizzard, Atari, Electronic Arts,
LucasArts, Namco, Sega, Take-Two Interactive Software, and Ubisoft. Additionally, certain large intellectual
property owners, such as Disney, Viacom, and Warner Bros. have established video game units to develop
and publish games based upon certain of the properties they own. In recent years, our competition has
expanded to include online publishers of interactive entertainment, such as Zynga and Shanda Interactive
Entertainment.
In addition to competing for video game sales, we compete with our competitors over licenses and brand-
name recognition, access to distribution channels, and effectiveness of marketing and price. We also face
intense competition from our competitors for the services of talented video game producers, artists, engineers
and other employees.
Employees
As of March 31, 2010, we employed approximately 1,680 people, of whom over 640 were outside the United
States. We believe that our ability to attract and retain qualified employees is a critical factor in the successful
development and exploitation of our products and that our future success will depend, in large measure, on
our ability to continue to attract and retain qualified employees. None of our employees are represented by a
labor union or covered by a collective bargaining agreement and we consider our relations with employees to
be favorable.
Financial Information About Geographic Areas
See Part II—Item 7, “Management Discussion and Analysis of Financial Condition and Results of Operations”
and “Note 22—Segment and Geographic Information” in the notes to the consolidated financial statements
included in Part II—Item 8.
Available Information
We file annual, quarterly and current reports, proxy statements and other information with the Securities and
Exchange Commission (“SEC”). Our SEC filings, including our annual report on Form 10-K, quarterly reports
on Form 10-Q, current reports on Form 8-K, and any amendments to those reports filed or furnished pursuant
to Section 13(a) of the Exchange Act are available to the public free of charge over the Internet at our
website at http://www.thq.com or at the SEC’s web site at http://www.sec.gov. Our SEC filings will be
available on our website as soon as reasonably practicable after we have electronically filed or furnished
them to the SEC. Information contained on our website is not incorporated by reference into this annual
report on Form 10-K. You may also read and copy any materials we file with the SEC at the SEC’s Public
Reference Room at 100 F Street, NE, Washington D.C. 20549. You may obtain information on the operation
of the Public Reference Room by calling the SEC at 1-800-SEC-0330. You can view our Code of Business
Conduct and Ethics, our Code of Ethics for Executive Officers and Other Senior Financial Officers and the
charters for each of our committees of the Board of Directors free of charge on the corporate governance
section of our website.
Item 1A . Ri sk Fac tors
Our business is subject to many risks and uncertainties that may impact our future financial performance.
Some of those important risks and uncertainties that may cause our operating results to vary or may
materially and adversely impact our operating results are as follows: