THQ 2011 Annual Report Download - page 54

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We are a leading worldwide developer and publisher of interactive entertainment software for all popular game systems, including:
• home video game consoles such as the Microsoft Xbox 360 and Xbox 360 Kinect (collectively referred to as "Xbox 360"),
Nintendo Wii ("Wii"), and Sony PlayStation 3 and PlayStation Move (collectively referred to as "PS3");
• handheld platforms such as the Nintendo DS, DSi and 3DS (collectively referred to as "DS"), and Sony PlayStation
Portable ("PSP");
• wireless devices based on the Apple iOS (including the iPhone, iTouch and iPad), Google Android, and Windows
Mobile platforms;
• personal computers ("PCs"), including games played online; and
• the Internet, including on social networking sites such as Facebook.
In addition to titles published on the wireless devices noted above, we also develop and publish titles (and supplemental
downloadable content) for digital distribution via Sony's PlayStation Network ("PSN") and Microsoft's Xbox LIVE Marketplace
("Xbox LIVE") and Xbox LIVE Arcade ("XBLA"), as well as digitally offer our PC titles through online download stores and
services such as Steam. We believe that digital delivery of games and game content is becoming an increasingly important part
of our business. Accordingly, we plan to continue integrating a digital component into our franchises where applicable, thus
creating an ecosystem which we believe will retain consumers and generate increased revenues.
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 core gamers to products targeted to children and the mass market. Our portfolio
of key brands includes:
• games based on our owned intellectual properties including Company of Heroes, Darksiders, Homefront, Red Faction,
Saints Row, and racing games based on our MX vs. ATV brand;
• core games based on licensed properties including the Ultimate Fighting Championship ("UFC"), World Wrestling
Entertainment ("WWE"), and Games Workshop's Warhammer 40,000 universe; and
• games based on popular casual and lifestyle brands including Disney, Disney•Pixar, DreamWorks Animation, Marvel
Entertainment, Mattel, NBC's The Biggest Loser, Nickelodeon, and Sony Pictures Consumer Product's JEOPARDY! and
Wheel of Fortune.
Additionally, during fiscal 2011 we launched our new uDraw Game Tablet ("uDraw"), a first-of-its-kind, innovative new gaming
accessory targeted at consumers of all ages. We initially developed uDraw for the Wii platform and we expect to bring it to Xbox
360 and PS3 platforms during the calendar 2011 holiday season. uDraw was launched with uDraw Studio, an expansive drawing,
coloring and art-based software product. In addition to uDraw Studio, in fiscal 2011 we developed and published two other
software products designed for use with uDraw – Pictionary and Dood's Big Adventure, which launched with uDraw.
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Principles of Consolidation. Our consolidated financial statements include the accounts of THQ Inc. and our wholly-owned
subsidiaries. Our consolidated financial statements also include the THQ / JAKKS Pacific LLC ("LLC") joint venture, which was
comprised of THQ and JAKKS Pacific, Inc. ("Jakks"), through December 31, 2009, the date the LLC was dissolved (see "Note 18
— Joint Venture and Settlement Agreements"). The results of operations for acquired companies have been included in our
consolidated statements of operations beginning on the closing date of acquisition. All material intercompany balances and
transactions have been eliminated in consolidation.
Prior to April 30, 2010, we consolidated the results of THQ*ICE LLC (a joint venture with ICE Entertainment, Inc.) in our
consolidated financial statements as we believed we were the primary beneficiary and would have received the majority of expected
returns or absorbed the majority of expected losses of THQ*ICE LLC. We sold our interest in THQ*ICE LLC on April 30, 2010
and recognized an insignificant gain.
In January 2011, we sold certain wireless carrier contracts and one of our wholly-owned subsidiaries that had been involved in
publishing and developing a portion of our content sold on legacy wireless platforms for an insignificant gain. We are continuing
our investment in the wireless platforms with the carrier contracts retained, focusing on the development of products for use in
products based on the Apple iOS, Google Android and Microsoft Windows Mobile operating systems.
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