UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 OR 15(D) of The Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): May 6, 2008

 

THQ INC.

(Exact name of registrant as specified in charter)

 

Delaware

0-18813

13-3541686

(State or other jurisdiction

(Commission

(IRS Employer

of incorporation)

File Number)

Identification No.)

 

 

 

29903 Agoura Road
Agoura Hills,
California

91301

(Address of principal executive offices)

(Zip Code)

 

(818) 871-5000

(Registrant’s telephone number, including area code)

 

 

(Former name or former address, if changed since last report.)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 



 

Section 2 – FINANCIAL INFORMATION

 

Item 2.02  Results of Operations and Financial Condition

 

On May 6, 2008, THQ Inc. (“THQ” or the “Registrant”) issued a press release announcing its financial results for the fourth fiscal quarter and fiscal year ended March 31, 2008. A copy of the press release is attached hereto as Exhibit 99.1.

 

The press release attached as Exhibit 99.1 includes certain non-GAAP financial measures that include deferred revenue and expenses, and exclude stock-based compensation expense and related income tax effects. The non-GAAP financial measures included in the earnings release have been reconciled to the comparable GAAP results and should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, GAAP results.

 

Neither the information in this Form 8-K nor the information in the press release shall be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

 

Section 9 – Financial Statements and Exhibits

 

Item 9.01  Financial Statements and Exhibits

 

(d)

 

Exhibits

 

 

 

 

 

 

 

 

 

Exhibit
Number

 

Description

 

 

 

 

 

 

 

99.1

 

Press Release dated May 6, 2008, relating to THQ’s financial results for the fourth fiscal quarter and fiscal year ended March 31, 2008.

 

2



 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, THQ has duly caused this report to be signed on its behalf by the undersigned, thereto duly authorized.

 

 

 

THQ INC.

 

 

 

 

By:

/s/ Colin Slade

Date:    May 6, 2008

 

Colin Slade

 

 

  Executive Vice President and Chief Financial Officer

 

3



 

INDEX TO EXHIBITS

 

Exhibit Number

 

Description

 

 

 

99.1

 

Press Release dated May 6, 2008, relating to THQ’s financial results for the fourth fiscal quarter and fiscal year ended March 31, 2008.

 

4


Exhibit 99.1

 

FOR IMMEDIATE RELEASE

 

29903 Agoura Road, Agoura Hills, California 91301

Julie MacMedan

 

THQ/Investor Relations

Telephone: 818 871-5000 Fax: 818 871-7400

818/871-5125

 

 

 

Liz Pieri

 

THQ/Media Relations

 

818/871-5061

 

THQ REPORTS FISCAL 2008 FOURTH QUARTER RESULTS

 

AGOURA HILLS, Calif. – May 6, 2008 - THQ Inc. (NASDAQ: THQI) today announced financial results for the fourth quarter and fiscal year ended March 31, 2008, and provided its financial outlook for the first quarter ending June 30, 2008, and fiscal year ending March 31, 2009.

 

For the twelve months ended March 31, 2008, THQ reported net sales of $1,030.5 million, compared with $1,026.9 million in the prior year.  On a non-GAAP basis, the company reported fiscal 2008 net sales of $1,061.0 million, which excludes the effects of deferred revenue from Frontlines: Fuel of WarFiscal 2008 marks the company’s 13th consecutive year of revenue growth.

 

For the fiscal year ended March 31, 2008, the company reported a net loss of $35.3 million, or $0.53 per share.  In the prior year, the company reported net income of $68.0 million, or $1.01 per diluted share.   On a non-GAAP basis, excluding stock-based compensation and the effects of deferred revenue and costs of Frontlines: Fuel of War, the company reported a fiscal 2008 net loss of $13.6 million, or $0.20 per share.  In fiscal 2007, the company reported non-GAAP net income of $84.0 million, or $1.24 per diluted share, which excluded stock-based compensation.  THQ’s GAAP and non-GAAP net (loss) income for fiscal 2008 and fiscal 2007 includes a $1.5 million and $3.1 million, respectively, gain on discontinued operations from the sale of Minick AG.

 

“In fiscal 2008, we did not achieve our revenue and profit targets and we are taking aggressive steps to ensure that we significantly improve execution in fiscal 2009 and beyond,” said Brian Farrell, THQ president and CEO.  “Going forward, we are focused on three key initiatives.  We are rolling out a stronger slate of products.  We have put in place and are executing against initiatives to improve our product quality and competitiveness.  We are also realigning our cost structure to generate significant

 

- more -



 

operating leverage in fiscal 2009.  We believe these initiatives will restore profitable growth and improve value for shareholders.”

 

For the fourth quarter of fiscal 2008, THQ reported net sales of $187.0 million, up from $172.1 million for the same period a year ago.  On a non-GAAP basis, the company reported net sales of $217.6 million, which excludes the impact of deferred revenue from Frontlines: Fuel of War on both the Xbox 360® and Windows PC platforms.

 

Fiscal fourth quarter net sales, which exceeded prior guidance, were led by Frontlines: Fuel of War, MX vs. ATV Untamed™ and WWE® SmackDown® vs. Raw® 2008.  The company stated that MX vs. ATV Untamed and WWE SmackDown vs. Raw 2008 exceeded expectations, and Frontlines: Fuel of War met expectations, during the quarter.  However, the company experienced weaker-than-expected sell through of some of its previously released titles, which resulted in greater-than-anticipated price protection and reserves, as well as increased software amortization expense during the quarter.

 

As a result, for the fourth quarter of fiscal 2008, the company reported a net loss of $34.5 million, or $0.52 per share.  For the same period a year ago, THQ reported net income of $6.5 million, or $0.09 per diluted share.  On a non-GAAP basis, the company reported a fiscal fourth quarter net loss of $24.8 million, or $0.37 per share, excluding stock-based compensation and the effects of deferred revenue and costs of Frontlines: Fuel of War.  For the same period a year ago, the company reported non-GAAP net income of $10.1 million, or $0.15 per diluted share, which excluded stock-based compensation.   THQ’s GAAP and non-GAAP net income for the fourth quarter of fiscal 2007 includes a $973,000 gain on discontinued operations from the sale of Minick AG.

 

A reconciliation of non-GAAP to GAAP results is provided in the accompanying financial tables.

 

“We believe our stronger fiscal 2009 product line-up is positioned to take advantage of the expanding demographic on the growing installed base of new gaming systems,” said Farrell.  “Our line-up is anchored by Saints Row™ 2 and Red Faction® Guerrilla™, sequels to two of our most successful original franchises.  We have a strong slate of new original titles developed specifically for the Nintendo Wii platform.  We are introducing two new promising original brands, de Blob™ and Darksiders™.  And, we plan to launch new games based on our proven annual franchises: WWE SmackDown vs. Raw 2009, Disney·Pixar’s Wall-E and a portfolio of Nickelodeon titles.”

 

Farrell continued, “As part of our strategy of managing some of the biggest brands in entertainment in the video game category, we are thrilled with our new relationship with DreamWorks Animation.  DreamWorks Animation is one of the most proven brands in entertainment based on their exceptional creative talent and box office success.  We’re also excited about launching our first games based on the

 

2



 

Ultimate Fighting Championship in spring of next year in conjunction with a prime UFC event.  And importantly, the new WWE Legends of Wrestlemania game next March is a great addition to our portfolio.”

 

Fiscal 2009 Guidance

 

THQ issued initial guidance for the first quarter ending June 30, 2008, and fiscal year ending March 31, 2009, which excludes the effects of deferred revenue and costs, stock-based compensation and restructuring costs, as follows:

 

·                  For the fiscal year ending March 31, 2009, THQ expects net sales in the range of approximately $1,175 million to $1,200 million and operating margins in the high single digits, resulting in earnings per diluted share in the range of approximately $0.95 to $1.05.

·                  For the fiscal first quarter ending June 30, 2008, THQ expects to report net sales in the range of approximately $115 million to $125 million and a net loss per share in the range of approximately $0.38 to $0.42.  The anticipated loss reflects a light product release schedule and the timing of expenses.

 

Fiscal 2008 Highlights and Recent Developments:

 

·                  The company recently strengthened its portfolio of licensed franchises with the addition of:

·                  a new relationship with DreamWorks Animation to publish games based on the studio’s 2010 fall animated feature film; and

·                  WWE Legends of Wrestlemania, which is scheduled for the fourth quarter of fiscal 2009.

·                  The company enhanced its offering of online and casual games with the addition of:

·                  a co-publishing agreement with Shanda Interactive Entertainment Limited to bring Company of Heroes Online to the Chinese market in fiscal 2009; and

·                  the acquisition of Elephant Entertainment.

·                  THQ unveiled an extensive line-up of new original games designed specifically for the Nintendo Wii, including de Blob, Deadly Creatures, Big Beach Sports and All Star Cheer™.

·                  THQ strengthened its Studio System with the acquisition of Big Huge Games and the appointment of two new executives to help drive improved product development execution and new intellectual property creation.

 

Fiscal 2008 Sales Achievements:

 

·                  THQ shipped 6 million units of WWE SmackDown vs. Raw 2008, driving THQ’s third consecutive year as the #1 fighting publisher, with a 33% market share in the US, according to the NPD Group.

·                  Lifetime shipments of THQ’s games based on Nickelodeon and WWE each surpassed $1 billion.

·                  THQ shipped more than 1.5 million units of the #1 off-road racing game, MX vs. ATV Untamed,

 

3



 

bringing life-to-date franchise shipments to 6.5 million units.

·                  THQ established two new original franchises: Frontlines: Fuel of War and Drawn to Life™.

·                  THQ’s international net sales increased significantly, to 51% of total global net sales from 42% a year ago, as THQ continued to execute on its international growth strategy.

 

During fiscal 2008, the company repurchased $54.9 million of common stock.  The company currently has $28.6 million authorized and available for repurchase.

 

Non-GAAP Financial Measures

 

In addition to results determined in accordance with GAAP, THQ discloses certain non-GAAP financial measures that include deferred revenue and expenses, and exclude stock-based compensation expense and related income tax effects.  The non-GAAP financial measures included in the earnings release have been reconciled to the comparable GAAP results and should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, GAAP results.

 

Stock-Based Compensation. When evaluating the performance of its business, THQ does not consider stock-based compensation charges. Likewise, THQ excludes stock-based compensation expense from its short and long-term operating plans. In contrast, THQ’s management team is held accountable for cash-based compensation and such amounts are included in the company’s operating plans. In addition, the stock-based compensation charges are subject to significant fluctuation outside the control of management due to the variables used to estimate the fair value of a share-based payment, such as, THQ’s stock price, interest rates and the volatility of THQ’s stock price.  Further, when considering the impact of equity award grants, THQ places a greater emphasis on overall shareholder dilution rather than the accounting charges associated with such grants.

 

Deferred Revenue/Costs. Due to the significant online functionality of Frontlines: Fuel of War, the company recognizes revenue and costs from the sale of this title over the estimated online service period.  Although THQ will defer the recognition of a significant portion of its net revenue and costs, there will be no adverse impact to its operating cash flow.  Internally, THQ excludes the impact of the change in deferred net revenue and costs related to packaged games in its non-GAAP financial measures when evaluating the company’s operating performance, when planning, forecasting and analyzing future periods, and when assessing the performance of its management team.  The company believes that excluding the impact of the change in deferred net revenue and costs from its operating results is important to facilitate comparisons to prior periods during which the company did not publish any titles that required deferral of revenue and costs.

 

In the financial tables below, THQ has provided a reconciliation of the most comparable GAAP financial measure to each of the historical non-GAAP financial measures used in this press release.

 

4



 

Investor Conference Call

 

THQ will host a conference call to discuss fiscal fourth quarter results today at 2:00 p.m. Pacific/5:00 p.m. Eastern.  Please dial 877.356.8075 or 706.902.0203, conference ID 44843020 to listen to the call or visit the THQ Inc. Investor Relations Home page at http://investor.thq.com.  The online archive of the broadcast will be available approximately two hours after the live call ends.  In addition, a telephonic replay of the conference call will be provided approximately two hours after the live call ends through May 8, 2008, by dialing 800.642.1687 or 706.645.9291, conference ID 44843020.

 

About THQ

 

THQ Inc. (NASDAQ: THQI) is a leading worldwide developer and publisher of interactive entertainment software.  Headquartered in Los Angeles County, California, THQ sells product through its global network of offices located throughout North America, Europe and Asia Pacific.  More information about THQ and its products may be found at www.thq.com and www.thqwireless.com. THQ, THQ Wireless, Big Huge Games, All Star Cheer, Big Beach Sports, Darksiders, de Blob, Deadly Creatures, Drawn to Life, Frontlines: Fuel of War, MX vs. ATV Untamed, Red Faction: Guerrilla, Saints Row 2 and their respective logos are trademarks and/or registered trademarks of THQ Inc.

 

All other trademarks are trademarks or registered trademarks of their respective owners.

 

This press release contains statements that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, the company’s expectations for revenue and earnings per share for the quarter ending June 30, 2008, and the fiscal year ending March 31, 2009, and for the company’s product releases and financial performance in future periods.  These forward-looking statements are based on current expectations, estimates and projections about the business of THQ Inc. and its subsidiaries (collectively referred to as “THQ”) and are based upon management’s beliefs and certain assumptions made by management.  Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such forward-looking statements, including, but not limited to, economic, competitive and technological factors affecting the operations, markets, products, services and pricing of THQ.  Unless otherwise required by law, THQ disclaims any obligation to update its view on any such risks or uncertainties or to revise or publicly release the results of any revision to these forward-looking statements.  Readers should carefully review the risk factors and the information that could materially affect THQ’s financial results, described in other documents that THQ files from time to time with the Securities and Exchange Commission, including its Quarterly Reports on Form 10-Q and its Annual Report on Form 10-K for the fiscal period ended March 31, 2007, and particularly the discussion of risk factors that may affect results of operations set forth therein.  Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.

 

# # #

(Tables Follow)

 

5



 

THQ Inc. and Subsidiaries

Unaudited Consolidated Statements of Operations

(In thousands, except per share data)

 

 

 

Three Months Ended

 

Twelve Months Ended

 

 

 

March 31,

 

March 31,

 

 

 

2008

 

2007

 

2008

 

2007

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

187,024

 

$

172,089

 

$

1,030,467

 

$

1,026,856

 

 

 

 

 

 

 

 

 

 

 

Costs and expenses:

 

 

 

 

 

 

 

 

 

Cost of sales – product costs

 

82,365

 

63,332

 

389,097

 

351,449

 

Cost of sales – software amortization and royalties

 

54,621

 

25,098

 

231,800

 

165,462

 

Cost of sales – license amortization and royalties

 

13,274

 

12,630

 

99,524

 

99,533

 

Cost of sales – venture partner expense

 

2,815

 

1,745

 

24,056

 

16,730

 

Product development

 

34,365

 

23,271

 

128,869

 

97,105

 

Selling and marketing

 

39,793

 

23,109

 

175,288

 

139,958

 

General and administrative

 

17,632

 

19,142

 

69,901

 

78,413

 

Total costs and expenses

 

244,865

 

168,327

 

1,118,535

 

948,650

 

Income (loss) from continuing operations

 

(57,841

)

3,762

 

(88,068

)

78,206

 

Interest and other income, net

 

2,096

 

3,751

 

15,433

 

12,822

 

Income (loss) from continuing operations before income taxes and minority interest

 

(55,745

)

7,513

 

(72,635

)

91,028

 

Income taxes

 

(21,214

)

1,991

 

(35,785

)

26,206

 

Income (loss) from continuing operations before minority interest

 

(34,531

)

5,522

 

(36,850

)

64,822

 

Minority interest

 

 

 

 

136

 

Income (loss) from continuing operations

 

(34,531

)

5,522

 

(36,850

)

64,958

 

Gain on sale of discontinued operations, net of tax

 

 

973

 

1,513

 

3,080

 

Net income (loss)

 

$

(34,531

)

$

6,495

 

$

(35,337

)

$

68,038

 

 

 

 

 

 

 

 

 

 

 

Earnings (loss) per share – basic:

 

 

 

 

 

 

 

 

 

Continuing operations

 

$

(0.52

)

$

0.08

 

$

(0.55

)

$

1.00

 

Discontinued operations

 

 

0.02

 

0.02

 

0.05

 

Earnings (loss) per share – basic

 

$

(0.52

)

$

0.10

 

$

(0.53

)

$

1.05

 

Shares used in per share calculation – basic

 

66,392

 

66,052

 

66,475

 

65,039

 

Earnings (loss) per share – diluted:

 

 

 

 

 

 

 

 

 

Continuing operations

 

$

(0.52

)

$

0.08

 

$

(0.55

)

$

0.96

 

Discontinued operations

 

 

0.01

 

0.02

 

0.05

 

Earnings (loss) per share – diluted

 

$

(0.52

)

$

0.09

 

$

(0.53

)

$

1.01

 

Shares used in per share calculation – diluted

 

66,392

 

68,746

 

66,475

 

67,593

 

 

6



 

THQ Inc. and Subsidiaries

Reconciliation of GAAP Net Income (Loss) to Non-GAAP Net Income (Loss) (a)

(In thousands, except per share data)

 

 

 

Three Months Ended
March 31,

 

Twelve Months Ended
March 31,

 

 

 

2008

 

2007

 

2008

 

2007

 

Net sales

 

$

187,024

 

$

172,089

 

$

1,030,467

 

$

1,026,856

 

Changes in deferred net revenue (b)

 

30,547

 

 

30,547

 

 

Non-GAAP net sales

 

$

217,571

 

$

172,089

 

$

1,061,014

 

$

1,026,856

 

 

 

 

Three Months Ended
March 31,

 

Twelve Months Ended
March 31,

 

 

 

2008

 

2007

 

2008

 

2007

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations

 

$

(34,531

)

$

5,522

 

$

(36,850

)

$

64,958

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP adjustments:

 

 

 

 

 

 

 

 

 

Changes in deferred net revenue (b)

 

30,547

 

 

30,547

 

 

 

 

 

 

 

 

 

 

 

 

Change in deferred cost of sales:

 

 

 

 

 

 

 

 

 

Change in deferred product costs

 

(7,482

)

 

(7,482

)

 

Change in deferred software amortization and royalties

 

(13,161

)

 

(13,161

)

 

Total change in deferred cost of sales (b)

 

(20,643

)

 

(20,643

)

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation and related costs:

 

 

 

 

 

 

 

 

 

Cost of sales – software amortization and royalties

 

1,409

 

1,299

 

6,800

 

2,087

 

Product development

 

1,339

 

1,237

 

4,773

 

4,824

 

Selling and marketing

 

571

 

1,035

 

2,654

 

3,521

 

General and administrative

 

1,631

 

2,471

 

8,444

 

11,461

 

Interest and other income, net

 

 

 

 

61

 

Total stock-based compensation and related costs (c)

 

4,950

 

6,042

 

22,671

 

21,954

 

 

 

 

 

 

 

 

 

 

 

Income tax adjustments (d)

 

(5,140

)

(2,485

)

(10,859

)

(5,943

)

 

 

 

 

 

 

 

 

 

 

Total non-GAAP adjustments

 

9,714

 

3,557

 

21,716

 

16,011

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP income (loss) from continuing operations

 

(24,817

)

9,079

 

(15,134

)

80,969

 

Gain on sale of discontinued operations, net of tax

 

 

973

 

1,513

 

3,080

 

Non-GAAP net income (loss)

 

$

(24,817

)

$

10,052

 

$

(13,621

)

$

84,049

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP earnings (loss) per share – diluted:

 

 

 

 

 

 

 

 

 

Non-GAAP continuing operations

 

$

(0.37

)

$

0.13

 

$

(0.23

)

$

1.20

 

Discontinued operations

 

 

0.02

 

0.03

 

0.04

 

Non-GAAP earnings (loss) per share – diluted

 

$

(0.37

)

$

0.15

 

$

(0.20

)

$

1.24

 

 


Notes:

 

(a) See explanation above regarding the Company’s practice on reporting non-GAAP financial measures.

(b) Prior to fiscal 2008, the Company did not defer net revenue or the related cost of sales.

(c) Stock-based compensation expense recorded under SFAS 123(R) in fiscal 2008 and fiscal 2007, and the payroll tax effects of our historical stock option grant practices investigation.

(d) Income tax associated with stock-based compensation expense and deferred revenue and related costs, as well as the payroll tax effects of our historical stock option grant practices investigation.

 

7



 

THQ Inc. and Subsidiaries

Unaudited Consolidated Balance Sheets

(In thousands)

 

 

 

March 31,

 

March 31,

 

 

 

2008

 

2007

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

Cash, cash equivalents and short-term investments

 

$

317,504

 

$

457,958

 

Accounts receivable, net of allowances

 

112,843

 

67,586

 

Inventory

 

38,240

 

27,381

 

Licenses

 

47,182

 

41,406

 

Software development

 

155,821

 

130,512

 

Income taxes receivable

 

 

18,525

 

Prepaid expenses and other current assets

 

24,487

 

16,238

 

Total current assets

 

696,077

 

759,606

 

Property and equipment, net

 

50,465

 

45,095

 

Licenses, net of current portion

 

39,597

 

49,661

 

Software development, net of current portion

 

25,369

 

33,766

 

Income taxes receivable, net of current portion

 

7,098

 

2,163

 

Deferred income taxes

 

55,115

 

15,812

 

Goodwill

 

122,385

 

88,688

 

Long-term marketable securities

 

52,599

 

 

Other long-term assets, net

 

20,002

 

18,750

 

TOTAL ASSETS

 

$

1,068,707

 

$

1,013,541

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

Accounts payable

 

$

61,700

 

$

28,225

 

Accrued and other current liabilities

 

202,102

 

143,418

 

Income tax payable

 

8,634

 

 

Deferred income taxes

 

16,783

 

25,647

 

Total current liabilities

 

289,219

 

197,290

 

Other long-term liabilities

 

38,717

 

47,294

 

Total liabilities

 

327,936

 

244,584

 

Total stockholders’ equity

 

740,771

 

768,957

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

 

$

1,068,707

 

$

1,013,541

 

 

8



 

THQ Inc. and Subsidiaries

Unaudited Supplemental Financial Information

 

 

 

Three Months Ended

 

Twelve Months Ended

 

 

 

March 31,

 

March 31,

 

 

 

2008

 

2007

 

2008

 

2007

 

 

 

 

 

 

 

 

 

 

 

Platform Revenue Mix

 

 

 

 

 

 

 

 

 

Consoles

 

 

 

 

 

 

 

 

 

Microsoft Xbox 360

 

6.3

%

6.5

%

12.6

%

13.1

%

Microsoft Xbox

 

0.1

 

1.1

 

0.2

 

2.7

 

Nintendo Wii

 

12.4

 

3.5

 

8.9

 

2.9

 

Nintendo Game Cube

 

0.2

 

2.0

 

0.7

 

5.1

 

Sony PlayStation 3

 

6.6

 

 

8.3

 

 

Sony PlayStation 2

 

18.1

 

21.9

 

24.5

 

29.7

 

 

 

43.7

 

35.0

 

55.2

 

53.5

 

 

 

 

 

 

 

 

 

 

 

Handheld

 

 

 

 

 

 

 

 

 

Nintendo Dual Screen

 

29.2

 

14.9

 

22.0

 

11.1

 

Nintendo Game Boy Advance

 

2.3

 

10.6

 

3.6

 

11.7

 

Sony PlayStation Portable

 

8.6

 

5.6

 

8.2

 

6.4

 

Wireless

 

2.8

 

2.5

 

1.9

 

2.6

 

 

 

42.9

 

33.6

 

35.7

 

31.8

 

 

 

 

 

 

 

 

 

 

 

PC

 

13.4

 

30.6

 

9.1

 

14.6

 

Other

 

 

0.8

 

0.0

 

0.1

 

 

 

100.0

%

100.0

%

100.0

%

100.0

%

 

 

 

 

 

 

 

 

 

 

Geographic Revenue Mix

 

 

 

 

 

 

 

 

 

Domestic

 

43.3

%

52.5

%

48.8

%

58.4

%

Foreign

 

56.7

 

47.5

 

51.2

 

41.6

 

 

 

100.0

%

100.0

%

100.0

%

100.0

%

 

9