Press Release: Microsoft will now publish games for Nintendo (1 Viewer)

[John Kilroy]

CALABASAS HILLS, Calif.--(BUSINESS WIRE)--June 25, 2002--THQ Inc. (NASDAQ:THQI - News) and Microsoft today announced an exclusive, worldwide Game Boy Advance publishing agreement. Under the agreement, THQ will publish several of Microsoft Game Studios' top-selling Xbox and PC game properties on the popular Game Boy® Advance system. In addition to "Oddworld: Munch's Oddysee(TM)" and "Monster Truck Madness 2.0," THQ and Microsoft Game Studios will work together to identify additional properties for release under the agreement.
"Microsoft Game Studios has created several innovative game franchises that have met with tremendous success among PC and Xbox gamers," stated Germaine Gioia, vice president, licensing, THQ. "This unique deal augments our longstanding leadership position in handheld gaming with an additional pipeline of great gaming content for the Game Boy Advance system."
"Our partnership with THQ provides an exciting licensing opportunity to introduce some of Microsoft Game Studios' best-selling franchises to new and broader audiences worldwide," said John Jordan, Director of Xbox Business Development at Microsoft Game Studios. "THQ has a stellar reputation for game development, and we look forward to working with them to bring `Oddworld: Munch's Oddysee(TM),' `Monster Truck Madness 2.0' and other best-selling franchises to the hand-held platform."
"We always look for expansion opportunities for our games, and hand-held platforms provide a great opportunity to capture a new worldwide audience," said Ed Ventura, Director of PC Business Development at Microsoft Game Studios. "By working with THQ, we introduce Game Boy Advance into the platform mix for our titles, giving consumers another opportunity to experience our award-winning products and franchises."
About Microsoft Game Studios
Microsoft Game Studios is a leading worldwide publisher and developer of games for the Xbox, PC and online platforms. Comprised of a network of top developers, Microsoft Game Studios is committed to creating innovative and diverse game portfolios for: Xbox (www.xbox.com), including such franchises as "Halo," "Project Gotham Racing" and "NFL Fever"; PC (www.microsoft.com/games/), including such franchises as "Age of Empires," "Flight Simulator" and "Zoo Tycoon"; and Zone.com (zone.msn.com), the official games channel for the MSN network and home to such hits as "Bejeweled" and "Outsmart."
About THQ
THQ Inc. develops and publishes interactive entertainment software worldwide for a variety of hardware platforms including PC CD-ROM, wireless devices, and those manufactured by Sony Computer Entertainment, Nintendo and Microsoft. The THQ Web site is located at www.thq.com. The THQ Wireless site is located at www.thqwireless.com.
This press release contains statements that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations, estimates and projections about THQ's business based, in part, on assumptions made by its management. These statements are not guarantees of THQ's future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors, including, but not limited to, those described above and the following: changes in demand for THQ's products, product mix, the timing of customer orders and deliveries, the impact of competitive products and pricing and difficulties encountered in the integration of acquired businesses. In addition, such statements could be affected by growth rates and market conditions relating to the interactive software industry and general domestic and international economic conditions. Specific information concerning these and other such factors is contained in THQ's Registration Statement on Form S-3 as filed with the Securities and Exchange Commission on January 22, 2002. A copy of this filing may be obtained by contacting THQ or the SEC. The forward-looking statements contained herein speak only as of the date on which they are made, and THQ does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release.
Note: Xbox is a trademark of Microsoft Corporation in the United States and/or other countries.

 

[BrianB]

No, THQ will publish games for the Gameboy Advance, not Microsoft. There /is/ a difference.

 

[Chris Beveridge]

Still, it's a good move if it works right. You take your name brands, expose them to the hugeness that is the GBA market, and tap into it. It turns into a thing of "you like Project Gotham on your GBA? Why not try out PG on Xbox Live" etc etc.

 

[Morgan Jolley]

When Sega brought its games to other consoles, it was a good move. Then again, the DC was already dead. The X-Box is still live and kicking.

 

[Camp]

No big deal. Is the GBA in any way a competitor to Xbox? No. This is extending Microsoft's brands. That's all.

 

[Morgan Jolley]

The GBA is still a competitor in the gaming market. If the GBA starts selling a lot more and its software sales go through the roof, thats money that is NOT being spent on MS, and thus, it is looked at as a competitor.

 

[Camp]

Morgan,
Typical of your posts, you're not really saying anything. You're destined to become a lawyer.

If the GBA starts selling a lot more and its software sales go through the roof, thats money that is NOT being spent on MS, and thus, it is looked at as a competitor.

True, if someone buys a GBA game they're buying a GBA game and not a Microsoft product. That means nothing.
Nevermind the fact that if they buy a GBA game published by THQ and licensed from Microsoft that Microsoft is making money on the deal.
GBA and Xbox are not really geared toward the same consumer. People enter a store knowing they want a console game or a handheld game...they don't comparison shop GBA vs. Xbox...it just doesn't happen.
BTW, use of the word "thus" doesn't make your point any more intelligent.

 

[John Kilroy]

That was pretty stiff, Camp. Is there some sort of feud between you and Morgan that made that necessary? Did he do something to you?

 

[Camp]

John,
Did you not see the ?
Back down off that defensive posture, I'm just playing around.

 

[Morgan Jolley]

I don't take anything like that seriously. I know we're all pretty sarcastic.

Anyhoo...

Nevermind the fact that if they buy a GBA game published by THQ and licensed from Microsoft that Microsoft is making money on the deal

But THQ buys the license to publish the games from Nintendo, who eventually gets money from the deal whether the games sell or not. Nintendo is guaranteed a profit from the games. THQ and MS aren't. I think.

 

[Camp]

Thanks Morgan
Microsoft owns the intellectual rights to the games. Typically, they'll make money up front (from THQ) for licensing those rights. Often times they'll also make money based upon sales.
THQ makes money based upon sales.
Nintendo makes money based upon licensing fees from THQ (for the right to publish on Nintendo's platform) as well as from sales of the game(s).
There are various other side deals often used as well. Hope this helps.