Investor Presentation
February 26, 2009 Forward – Looking Statements
Certain statements made during this presentation may be deemed to constitute forward-looking statements. Such statements include but are not limited to THQ’s discussion of video game console and software growth, financial guidance, estimated release dates, and the potential for wireless gaming. Actual results may differ materially from those expressed in such statements due to numerous risks and uncertainties, including without limitation, demand and competition for the Company's products, and other risks and uncertainties described in the Company's filings with the Securities and Exchange Commission including our most recent Form 10-K dated March 31, 2008. THQ Initiatives
Product Strategy
Product Quality
Cost Alignment Market Trends
Recent reorganization and revised strategic plan to address these issues
‣ Concentration in top titles Core Gamer ‣ Quality is paramount
‣ Trend away from licensed TV and movie games Kids Business ‣ More competitive and less profitable
The Wii ‣ Top games are social/party games
Only viable business model in Asia Online Migration ‣ ‣ Excellent way to combat piracy, resale Strategic Objectives
Profitability ‣ Return business to profitability
Core Gamers ‣ Fewer, higher quality
Fighting ‣ Extend leadership
Kids ‣ More profitable
Mass Appeal ‣ Aggressively address new audiences
Online ‣ Build our brands online Profitability Strategy
Right-size the organization to execute on a smaller, more focused slate
Reduce FY ‘10 spending by approximately $220 million
Deliver quality products to appropriate market windows Cost Alignment
Studio resources realignment - $170 million
Company-wide efficiency and productivity - $50 million
Focused product line Core Gamer Strategy
Build Existing Brands & Launch 1 - 2 Brands Annually Fighting Strategy
Extend Leadership in Fighting Kids Strategy
Maximize profitability of existing licenses
Reinvigorate our pipeline with new licenses that deliver meaningful contribution margins
Pursue new audiences and casual forms of gaming Mass Appeal / Family Strategy
‘Family play’ on Wii
Non-licensed sports on Wii
Broaden appeal through brand extensions Online Strategy
Bring established THQ brands to online space
ONLINE
Explore new game concepts and business models in emerging regions or growing consumer segments Key Franchise Releases*
FY 2009 FY 2010E FY 2011E FY 2012E − UFC UFC UFC WWE WWE WWE WWE Saints Row 2 Red Faction Guerrilla Saints Row 3 Red Faction 4 − Darksiders Relic Action Darksiders 2 Baja MX vs ATV Racing MX vs ATV
Wall-E Disney/Pixar's Up Dreamworks "Mastermind" Pixar 4 − Marvel Superhero Squad Marvel Superhero Squad Marvel Superhero Squad de Blob Wii Casual Wii Casual Wii Casual Drawn to Life SpongeBob Drawn to Life Drawn to Life Drawn to Life SpongeBob SpongeBob's Tenth Avatar/SpongeBob New Animated Kids WH 40K: Dawn of War II Company of Heroes Online WWE Online Warhammer 40K MMO
* Release schedule subject to change World-Class Studio System
Juiced, Saints Row, New Racing Concept Red Faction
Frontlines, Darksiders, New Shooter Warhammer MMO de Blob, New Marvel WH 40K Dawn of War, Company of Heroes MX vs. ATV, Wii games Product Quality
Restructured PD management
Four stage greenlight process and post-greenlight milestone review
Creative development focus Product Quality
Metacritic 80+ Summary
Building franchises
Delivering on product quality
Aggressively realigning the business Investor Presentation
February 26, 2009