THQ Leverages Franchises for Record Sales

Los Angeles-based publisher THQ posted record high net sales of $1.027 billion for the 2007 fiscal year, according to the company's annual report released today. The sales constitute a 27% increase year over year from the company's 2006 net sales of $806.6 million. THQ attributed the growth to licensed games from Disney-Pixar, WWE and Nickelodeon--sales of titles from these brands made up 54% of fiscal 2007 net sales. Top sellers like Rainbow Studios' Cars (PC, PS2, Xbox, X360, GCN, Wii, NDS, PSP, GBA), based on the Pixar film, shipped almost 8 million units during fiscal 2007, while the Yuke's-developed WWE SmackDown vs. Raw 2007 (PS2, X360, PSP) shipped 4 million units during the same period. The same licensed properties accounted for 47% of the company's net sales in fiscal 2006. Overall, licensed properties accounted for approximately 80% of THQ's revenue, while the remaining 20 percent came from owned and internally developed franchises such as Volition's Saint's Row (X360). Despite licensed properties serving as the company's bread and butter, THQ said it will be aiming for one third of its revenues for fiscal 2008 to come from fully owned intellectual properties.