4.    THQ

Market Share: 9% (+3)
2006 Position: 5 (+1)
Revenues: $1 billion (+27%)
Profits: $68 million (+112%)
Expectations: 10%-15% revenue growth for 2008
12 Month Range: $19-$37 <THQI.O>
Employee Count: about 1,700
Age: 18 years
SKUs in Top 100: 5 (+2)
Franchises above 80%: 7 (+4)

THQ has done a fantastic job of diversifying its release portfolio in the last year. Out of the its franchises to exceed critical review scores of 80% five of them – Company of Heroes, Supreme Commander, Titan Quest, S.T.A.L.K.E.R. and Saints Row – did not exist thirteen months ago. Of those, Saints Row rewarded THQ for taking advantage of the hole in the market created by an absence of any real next-gen Grand Theft Auto-like games. As a result, that game did excellent numbers, especially considering it was an unproven new property.

So THQ is clearly looking to a future where it owns its own powerful, well-respected brands, and has backed this goal with credible, well-made product. The company is still relying on its history of well-marketed licensed products, however. Pixar’s Cars was among the best-selling games of the year, and contributed a significant amount to the company’s increased profitability, while the WWE-licensed Smackdown franchise made the jump to the next generation while maintaining high review scores and strong sales.

What this all means is THQ is positioning itself to have the best of both worlds. It can accept a high license fee because it knows how to make even higher revenues from that license. At the same time, it can release respected content for the hardcore audience and avoid a reputation as a licensed mediocrity factory. And its shareholders can continue to delight in those wonderfully high growth margins the company always seem to predict, and then exceed.

Pictured:
Supreme Commander
WWE Smackdown! vs. Raw 2008
Frontlines: Fuels of War
Juiced 2: Hot Import Nights