THQ 2011 Annual Report Download - page 32

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did not release any new titles based on the Disney•Pixar brand;
• a decrease in net sales from UFC Undisputed 2010 in fiscal 2011 compared to UFC 2009 Undisputed in fiscal 2010, resulting
from fewer units sold and a lower average net selling price; and
• a decrease in net sales of games based on our owned intellectual properties, due to titles released throughout fiscal 2010 such
as Darksiders, Drawn to Life: The N ext Chapter, MX vs. ATV Reflex, and Red Faction: Guerrilla, compared to net sales from
the late fiscal 2011 release of Homefront.
These decreases in net sales of our new releases, were partially offset by net sales in fiscal 2011 of uDraw and games based on
new licensed properties such as Barbie: Groom and Glam Pups, Hot Wheels: Track Attack, JEOPARDY!, Pictionary, and Wheel
of Fortune.
Net sales of our catalog titles decreased $20.6 million in fiscal 2011 compared to fiscal 2010 primarily due to a decrease in units
sold.
Net Sales by Territory
The following table presents our net sales by territory for fiscal 2011 and fiscal 2010 (amounts in thousands):
North America
Europe
Asia Pacific
International
Net sales before changes in deferred net revenue
Changes in deferred net revenue
Consolidated net sales
)LVFDO<HDU(QGHG0DUFK

$ 524,498
219,938
57,897
277,835
802,333
(137,075)
$ 665,258
65.4%
27.4
7.2
34.6
100.0%

$ 555,062
271,875
61,715
333,590
888,652
10,485
$ 899,137
62.5%
30.6
6.9
37.5
100.0%
,QFUHDVH
'HFUHDVH
$ (30,564)
(51,937)
(3,818)
(55,755)
(86,319)
(147,560)
$ (233,879)
&KDQJH
(5.5)%
(19.1)
(6.2)
(16.7)
(9.7)
(1,407.3)
(26.0)%
Net sales in North America decreased $30.6 million in fiscal 2011 compared to fiscal 2010. The decrease was primarily due to:
• a decrease in net sales from UFC Undisputed 2010 in fiscal 2011 compared to UFC 2009 Undisputed in fiscal 2010, resulting
from fewer units sold and a lower average net selling price;
• a decrease in units sold of games based on kids movie-based licensed games, which was primarily because in fiscal 2011 we
did not release any new titles based on the Disney•Pixar brand; and
• a decrease in net sales of games based on our owned intellectual properties, due to titles released throughout fiscal 2010 such
as Darksiders, Drawn to Life: The N ext Chapter, MX vs. ATV Reflex, and Red Faction: Guerrilla, compared to net sales from
the late fiscal 2011 release of Homefront.
These decreases were partially offset by net sales of uDraw and net sales of games based on new licensed properties.
Net sales in Europe decreased $51.9 million in fiscal 2011 compared to fiscal 2010. The decrease was primarily due to:
• a decrease in units sold of games based on kids movie-based licensed games, which was primarily because in fiscal 2011 we
did not release any new titles based on the Disney•Pixar brand;
• a decrease in net sales of games based on our owned intellectual properties, due to titles released throughout fiscal 2010 such
as Darksiders, Drawn to Life: The N ext Chapter, MX vs. ATV Reflex, and Red Faction: Guerrilla, compared to net sales from
the late fiscal 2011 release of Homefront;
• a decrease in net sales from UFC Undisputed 2010 in fiscal 2011 compared to UFC 2009 Undisputed in fiscal 2010, resulting
from fewer units sold and a lower average net selling price; and
• a decrease in units sold of games based on the WWE license.
These decreases were partially offset by net sales of uDraw. We estimate that changes in foreign currency translation rates during
fiscal 2011 decreased reported net sales in Europe by $4.8 million.
Net sales in the Asia Pacific territories decreased $3.8 million in fiscal 2011 compared to fiscal 2010 primarily due to a decrease
in units sold of games based on our owned intellectual properties and games based on the WWE brand. These decreases were
partially offset by increases in net sales from distribution arrangements. We estimate that changes in foreign currency translation
rates during fiscal 2011 increased reported net sales in this territory by $5.5 million.
23