THQ Inc. (NASDAQ: THQI) is a developer and publisher of video games. Founded in 1989 in the United States, the company develops products for video game consoles, handheld game systems, as well as for personal computers and wireless devices. THQ has offices in North America, Europe and Asia Pacific.
The company publishes internally created and externally licensed content in its product portfolio. THQ's internally created franchises include Saints Row, Frontlines: Fuel of War, Red Faction, MX vs. ATV, Company of Heroes and others. The company also holds exclusive, long-term licensing agreements with leading sports and entertainment content creators including World Wrestling Entertainment (WWE), Games Workshop (Warhammer 40,000), Ultimate Fighting Championship (UFC), Nickelodeon and Disney-Pixar. It has announced net sales of $830.0 million in 2008, down from $1,030.5 million in the year previous. Net losses were $431 million for the 12 months ending March 2009, down from $35.3 million in the year previous.
THQ, Inc. is a leading developer of gaming software for use on dedicated play stations, portable game players, and computers. The company produces a combination of licensed and self-developed titles. The licensed products include games based on WWF Wrestling, Scooby-Doo, Rugrats, Power Rangers, MTV Sports, and the Star Wars and Evil Dead motion pictures. Through its recently acquired Volition, Inc., subsidiary, the company produces original games such as Summoner and Descent. THQ games are primarily sold in the United States, but the company also has distribution arms in the United Kingdom, France, Germany, and Australia. The game industry has recently been developing new products with on-line components, and THQ is following this trend, as indicated by its purchase of the online gaming firm Genetic Anomalies, Inc., in 1999, its introduction of a wrestling game in 2000 with on-line features, and its preparation of games for Microsoft's on-line-capable Xbox platform, due for release in fall 2001.
THQ Inc. (THQ), incorporated in 1989, is a worldwide developer and publisher of interactive entertainment software for all game systems, including home video game consoles, such as the Microsoft Xbox 360 (Xbox 360), Nintendo Wii (Wii), Sony PlayStation 3 (PS3) and Sony PlayStation 2 (PS2); handheld platforms, such as the Nintendo DS and DSi (collectively referred to as DS), and Sony PlayStation Portable (PSP); wireless devices, including the iPhone, iTouch and iPad, and personal computers (PCs), including games played online. The Company develops, markets and sells video games and other interactive software and content for play on console platforms, handheld platforms, mobile devices, PCs and online. The Company also develops and publishes titles 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 its PC titles through online download stores and services, such as Steam. In February 2011, 24MAS announced that it acquired THQ's wireless operations and its global carrier business from the Company.
THQ’s titles cover a range of categories, including action, adventure, fighting, racing, role-playing, simulation, sports and strategy. The Company has created, licensed and acquired a group of brands, which it markets to a variety of consumer demographics ranging from products targeted at gamers to products targeted to children and the mass market. Its portfolio of Core Games includes games based on fighting brands, such as the Ultimate Fighting Championship (UFC) and World Wrestling Entertainment (WWE); racing games based on its MX vs. ATV brand, and action, shooter and strategy games based on its owned intellectual properties, such as Company of Heroes, Darksiders, Red Faction and Saints Row, as well as games based on Games Workshop's Warhammer 40,000 universe. Its kids, family and casual portfolio includes games based on brands, such as DreamWorks Animation, Disney Pixar, Marvel Entertainment, NBC's The Biggest Loser, Nickelodeon and Sony Picture Consumer Product's JEOPARDY! and Wheel of Fortune, as well as games based on its owned intellectual properties, including de Blob and Drawn to Life.
THQ develops its 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 its 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.
The Company competes with Microsoft, Nintendo, Sony, Activision/Blizzard, Atari, Electronic Arts, LucasArts, Namco, Sega, Take-Two Interactive Software, Ubisoft, Disney, Viacom, Warner Bros., Zynga and Shanda Interactive Entertainment.
During 1998 the company added two new subsidiaries. It purchased 3D graphics developer GameFX, Inc. for 246,000 shares of stock and $790,000 in cash. The Massachusetts-based firm was soon joined by German software distributor Rushware Microhandelsgesellschaft mbH, acquired for $6 million. Despite the loss of the WCW contract, THQ was allowed to produce its licensed games into 1999, and the company had successful offerings in WCW/NWO Revenge, WCW Nitro, and WCW/NWO Thunder. It conducted major advertising campaigns for the launch of these games, as well as for the company's Rugrats: Search for Reptar, targeted at children seven to 12 years old. THQ was now realizing 55 percent of its revenues from 64-bit Nintendo games, 30 percent from Sony PlayStation, and eight percent from Nintendo Game Boy. Only two percent came from sales of PC-based games. The majority of revenue, 85 percent, was earned in the United States.
THQ was also developing games that targeted fans of 'real' sports, offering Brunswick Bowling, Championship Motocross, and several BASS Masters Classic fishing simulation games in 1999. That same year, THQ made another acquisition in the spring when it purchased Pacific Coast Power & Light Co., a developer of game consoles. It also signed licensing deals with motocross star Ricky Carmichael, MTV Sports, and the makers of TV's 'Power Rangers' series. At the end of the year the company also acquired Genetic Anomalies, Inc., bringing THQ a developer of on-line gaming products. This area was heating up, as the possibilities of making games interactive via the Internet seemed to be the next major step for the industry. As the year ended THQ had its best Christmas sales season ever. The company had also moved to a new, larger headquarters site during the year.
The spring of 2000 saw the release of THQ's first on-line wrestling game, WWF With Authority, developed by Genetic Anomalies. The game could be played on-line in real time against another player anywhere in the world. Other features included chat capabilities and a world ranking system.
The volatile nature of the gaming marketplace was affecting THQ again, however, and the company announced in May that it would lose significantly more money than it had expected during the year. A transition in game console technology was pegged as the cause. It still had new ventures in the works, including an investment in Japanese game developer Yuke's Co. Ltd., a joint venture to market games with the Communication Devices division of Siemens AG of Germany, and the opening of an Australian office. The company also completed its largest acquisition to date, purchasing Volition, Inc. of Illinois for approximately $20 million. Volition was an established designer of original game concepts such as Descent and Freespace, and THQ had earlier teamed with the company to create Summoner and Red Faction. In September, THQ announced it would begin developing games for the newly announced Microsoft Xbox game system, due out in the fall of 2001. New releases included several more WWF titles and games based on television quiz show 'Who Wants to Be a Millionaire,' the Star Wars and Evil Dead movie series, and cartoon dog Scooby-Doo.
In only ten years, THQ had grown to become one of the top three independent video game makers in the United States. It offered what proved a winning mix of sports- and entertainment-based titles along with select original concepts. The company was now reaping the benefits of the hard lessons learned during its formative years. As the industry moved toward development of on-line gaming products, THQ appeared likely to remain a leader in its field.
Principal Subsidiaries: Black Pearl Software, Inc.; GameFx; Genetic Anomalies, Inc.; Heliotrope Studios, Inc.; Malibu Games, Inc.; Pacific Coast Power & Light Company; THQ Asia Pacific Pty. Ltd.; THQ Deutschland GmbH; THQ France; THQ International Ltd.; Volition, Inc.
Principal Competitors: The 3DO Company; Acclaim Entertainment, Inc.; Activision, Inc.; Electronic Arts, Inc.; Hasbro, Inc.; Havas SA; Infogrames Entertainment SA; Infogrames, Inc.; LucasArts Entertainment Company LLC; Microsoft Corporation; Midway Games, Inc.; Nintendo Co., Ltd.; SEGA Corporation; Take-Two Interactive Software, Inc.; The Walt Disney Company.
OVERALL
Beta: 2.22
Market Cap (Mil.): $308.91
Shares Outstanding (Mil.): 68.04
Annual Dividend: --
Yield (%): --
FINANCIALS
THQI.O Industry Sector
P/E (TTM): -- 28.79 21.07
EPS (TTM): -6.21 -- --
ROI: -21.44 4.84 1.78
ROE: -35.20 5.15 2.74
Statistics:
Public Company
Incorporated: 1990
Sales: $302.36 million
Employees: 390
Stock Exchanges: NASDAQ
Ticker Symbol: THQI
NAIC: 51121 Software Publishers
Key Dates:
1990: Jack Friedman founds THQ and acquires Broderbund Software's video game division.
1991: THQ becomes a public company after a merger with Trinity Acquisition Corporation.
1993: The company acquires of Black Pearl Software.
1994: Sales stall, and losses reach $17.5 million for the year.
1995: Friedman exits, and Brian Farrell is named CEO as the company's focus shifts to cheaper 16-bit games.
1996: The company invests in Inland Productions, Inc. and acquires Heliotrope Studios, Inc.
1999: THQ signs a deal with the World Wrestling Federation and moves to new headquarters.
2000: THQ is named a key publisher of games for forthcoming Microsoft Xbox system.
Name Age Since Current Position
Brian Farrell 56 1995 President, Chief Executive Officer, Director
Paul Pucino 49 2009 Chief Financial Officer, Executive Vice President
Edward Kaufman 51 2009 Executive Vice President - Business and Legal Affairs, Corporate Secretary
Ian Curran 43 2009 Executive Vice President - Global Publishing
Danny Bilson 53 2009 Executive Vice President - Core Games
Martin Good 49 2010 Executive Vice President - Kids, Family, Casual Games, and Global Online
Steven Dauterman 44 2010 Senior Vice President - Core Games Product Development
Teri Manby 38 2010 Vice President, Chief Accounting Officer, Corporate Controller
Lawrence Burstein 67 1991 Director
James Whims 56 1997 Director
Brian Dougherty 53 2002 Director
Henry DeNero 64 2003 Director
Jeffrey Griffiths 60 2005 Director
Gary Rieschel 54 2007 Director
Address:
27001 Agoura Road, Suite 325
Calabasas Hills, California 91301
U.S.A.
The company publishes internally created and externally licensed content in its product portfolio. THQ's internally created franchises include Saints Row, Frontlines: Fuel of War, Red Faction, MX vs. ATV, Company of Heroes and others. The company also holds exclusive, long-term licensing agreements with leading sports and entertainment content creators including World Wrestling Entertainment (WWE), Games Workshop (Warhammer 40,000), Ultimate Fighting Championship (UFC), Nickelodeon and Disney-Pixar. It has announced net sales of $830.0 million in 2008, down from $1,030.5 million in the year previous. Net losses were $431 million for the 12 months ending March 2009, down from $35.3 million in the year previous.
THQ, Inc. is a leading developer of gaming software for use on dedicated play stations, portable game players, and computers. The company produces a combination of licensed and self-developed titles. The licensed products include games based on WWF Wrestling, Scooby-Doo, Rugrats, Power Rangers, MTV Sports, and the Star Wars and Evil Dead motion pictures. Through its recently acquired Volition, Inc., subsidiary, the company produces original games such as Summoner and Descent. THQ games are primarily sold in the United States, but the company also has distribution arms in the United Kingdom, France, Germany, and Australia. The game industry has recently been developing new products with on-line components, and THQ is following this trend, as indicated by its purchase of the online gaming firm Genetic Anomalies, Inc., in 1999, its introduction of a wrestling game in 2000 with on-line features, and its preparation of games for Microsoft's on-line-capable Xbox platform, due for release in fall 2001.
THQ Inc. (THQ), incorporated in 1989, is a worldwide developer and publisher of interactive entertainment software for all game systems, including home video game consoles, such as the Microsoft Xbox 360 (Xbox 360), Nintendo Wii (Wii), Sony PlayStation 3 (PS3) and Sony PlayStation 2 (PS2); handheld platforms, such as the Nintendo DS and DSi (collectively referred to as DS), and Sony PlayStation Portable (PSP); wireless devices, including the iPhone, iTouch and iPad, and personal computers (PCs), including games played online. The Company develops, markets and sells video games and other interactive software and content for play on console platforms, handheld platforms, mobile devices, PCs and online. The Company also develops and publishes titles 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 its PC titles through online download stores and services, such as Steam. In February 2011, 24MAS announced that it acquired THQ's wireless operations and its global carrier business from the Company.
THQ’s titles cover a range of categories, including action, adventure, fighting, racing, role-playing, simulation, sports and strategy. The Company has created, licensed and acquired a group of brands, which it markets to a variety of consumer demographics ranging from products targeted at gamers to products targeted to children and the mass market. Its portfolio of Core Games includes games based on fighting brands, such as the Ultimate Fighting Championship (UFC) and World Wrestling Entertainment (WWE); racing games based on its MX vs. ATV brand, and action, shooter and strategy games based on its owned intellectual properties, such as Company of Heroes, Darksiders, Red Faction and Saints Row, as well as games based on Games Workshop's Warhammer 40,000 universe. Its kids, family and casual portfolio includes games based on brands, such as DreamWorks Animation, Disney Pixar, Marvel Entertainment, NBC's The Biggest Loser, Nickelodeon and Sony Picture Consumer Product's JEOPARDY! and Wheel of Fortune, as well as games based on its owned intellectual properties, including de Blob and Drawn to Life.
THQ develops its 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 its 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.
The Company competes with Microsoft, Nintendo, Sony, Activision/Blizzard, Atari, Electronic Arts, LucasArts, Namco, Sega, Take-Two Interactive Software, Ubisoft, Disney, Viacom, Warner Bros., Zynga and Shanda Interactive Entertainment.
During 1998 the company added two new subsidiaries. It purchased 3D graphics developer GameFX, Inc. for 246,000 shares of stock and $790,000 in cash. The Massachusetts-based firm was soon joined by German software distributor Rushware Microhandelsgesellschaft mbH, acquired for $6 million. Despite the loss of the WCW contract, THQ was allowed to produce its licensed games into 1999, and the company had successful offerings in WCW/NWO Revenge, WCW Nitro, and WCW/NWO Thunder. It conducted major advertising campaigns for the launch of these games, as well as for the company's Rugrats: Search for Reptar, targeted at children seven to 12 years old. THQ was now realizing 55 percent of its revenues from 64-bit Nintendo games, 30 percent from Sony PlayStation, and eight percent from Nintendo Game Boy. Only two percent came from sales of PC-based games. The majority of revenue, 85 percent, was earned in the United States.
THQ was also developing games that targeted fans of 'real' sports, offering Brunswick Bowling, Championship Motocross, and several BASS Masters Classic fishing simulation games in 1999. That same year, THQ made another acquisition in the spring when it purchased Pacific Coast Power & Light Co., a developer of game consoles. It also signed licensing deals with motocross star Ricky Carmichael, MTV Sports, and the makers of TV's 'Power Rangers' series. At the end of the year the company also acquired Genetic Anomalies, Inc., bringing THQ a developer of on-line gaming products. This area was heating up, as the possibilities of making games interactive via the Internet seemed to be the next major step for the industry. As the year ended THQ had its best Christmas sales season ever. The company had also moved to a new, larger headquarters site during the year.
The spring of 2000 saw the release of THQ's first on-line wrestling game, WWF With Authority, developed by Genetic Anomalies. The game could be played on-line in real time against another player anywhere in the world. Other features included chat capabilities and a world ranking system.
The volatile nature of the gaming marketplace was affecting THQ again, however, and the company announced in May that it would lose significantly more money than it had expected during the year. A transition in game console technology was pegged as the cause. It still had new ventures in the works, including an investment in Japanese game developer Yuke's Co. Ltd., a joint venture to market games with the Communication Devices division of Siemens AG of Germany, and the opening of an Australian office. The company also completed its largest acquisition to date, purchasing Volition, Inc. of Illinois for approximately $20 million. Volition was an established designer of original game concepts such as Descent and Freespace, and THQ had earlier teamed with the company to create Summoner and Red Faction. In September, THQ announced it would begin developing games for the newly announced Microsoft Xbox game system, due out in the fall of 2001. New releases included several more WWF titles and games based on television quiz show 'Who Wants to Be a Millionaire,' the Star Wars and Evil Dead movie series, and cartoon dog Scooby-Doo.
In only ten years, THQ had grown to become one of the top three independent video game makers in the United States. It offered what proved a winning mix of sports- and entertainment-based titles along with select original concepts. The company was now reaping the benefits of the hard lessons learned during its formative years. As the industry moved toward development of on-line gaming products, THQ appeared likely to remain a leader in its field.
Principal Subsidiaries: Black Pearl Software, Inc.; GameFx; Genetic Anomalies, Inc.; Heliotrope Studios, Inc.; Malibu Games, Inc.; Pacific Coast Power & Light Company; THQ Asia Pacific Pty. Ltd.; THQ Deutschland GmbH; THQ France; THQ International Ltd.; Volition, Inc.
Principal Competitors: The 3DO Company; Acclaim Entertainment, Inc.; Activision, Inc.; Electronic Arts, Inc.; Hasbro, Inc.; Havas SA; Infogrames Entertainment SA; Infogrames, Inc.; LucasArts Entertainment Company LLC; Microsoft Corporation; Midway Games, Inc.; Nintendo Co., Ltd.; SEGA Corporation; Take-Two Interactive Software, Inc.; The Walt Disney Company.
OVERALL
Beta: 2.22
Market Cap (Mil.): $308.91
Shares Outstanding (Mil.): 68.04
Annual Dividend: --
Yield (%): --
FINANCIALS
THQI.O Industry Sector
P/E (TTM): -- 28.79 21.07
EPS (TTM): -6.21 -- --
ROI: -21.44 4.84 1.78
ROE: -35.20 5.15 2.74
Statistics:
Public Company
Incorporated: 1990
Sales: $302.36 million
Employees: 390
Stock Exchanges: NASDAQ
Ticker Symbol: THQI
NAIC: 51121 Software Publishers
Key Dates:
1990: Jack Friedman founds THQ and acquires Broderbund Software's video game division.
1991: THQ becomes a public company after a merger with Trinity Acquisition Corporation.
1993: The company acquires of Black Pearl Software.
1994: Sales stall, and losses reach $17.5 million for the year.
1995: Friedman exits, and Brian Farrell is named CEO as the company's focus shifts to cheaper 16-bit games.
1996: The company invests in Inland Productions, Inc. and acquires Heliotrope Studios, Inc.
1999: THQ signs a deal with the World Wrestling Federation and moves to new headquarters.
2000: THQ is named a key publisher of games for forthcoming Microsoft Xbox system.
Name Age Since Current Position
Brian Farrell 56 1995 President, Chief Executive Officer, Director
Paul Pucino 49 2009 Chief Financial Officer, Executive Vice President
Edward Kaufman 51 2009 Executive Vice President - Business and Legal Affairs, Corporate Secretary
Ian Curran 43 2009 Executive Vice President - Global Publishing
Danny Bilson 53 2009 Executive Vice President - Core Games
Martin Good 49 2010 Executive Vice President - Kids, Family, Casual Games, and Global Online
Steven Dauterman 44 2010 Senior Vice President - Core Games Product Development
Teri Manby 38 2010 Vice President, Chief Accounting Officer, Corporate Controller
Lawrence Burstein 67 1991 Director
James Whims 56 1997 Director
Brian Dougherty 53 2002 Director
Henry DeNero 64 2003 Director
Jeffrey Griffiths 60 2005 Director
Gary Rieschel 54 2007 Director
Address:
27001 Agoura Road, Suite 325
Calabasas Hills, California 91301
U.S.A.