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Technology Stocks : THQ,Inc. (THQI)

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To: Ken who wrote (3439)2/25/1998 1:57:00 AM
From: Tom Caruthers  Read Replies (2) of 14266
 
Congrats to all THQI investors, some REALLY nice earnings ...

Question to those more familiar with THQI's business model: How can THQI spend only $1.6 million on development in ALL of 1997, yet put out 30 plus titles? What does their reliance on second party titles mean as far as the predictability of their revenue stream? Is there a worry that perhaps 1) These second party developers get jealous of THQI's profits and take their biz elsewhere? 2) That THQI's success will draw in competitors whose greater financial resources can take away licenses such as WCW which account for more than 30% of THQI's revenues?

Thanks for any and all responses!

Tom
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