Andy,
Good find, but don't forget the other side:
fool.com
The fact of the matter is, if THQI is going to do games based on Disney titles, then they are going to HAVE to spend a little more on R&D than they have been. $1.6 million for game development is not much per quarter given the plate of games THQI has.
(Fact is, A Bug's life and Toy Story 2 will be huge. A Bug's life has already been previewed to be a great little film.) But, these R&D costs are going to cut into THQI's margins and hence earnings growth.
That, coupled with the loss of marketing leverage afforded by the WCW titles, and that paints a big uncertainty over THQI. Also, if ERTS really is heading into N64, you can bet the the spectacular sales of N64 titles will diminish under the flood of new N64 titles, hence, lower profit margins/sales.
BTW, I have never heard of ECW and I doubt many or any on this board have heard of it either. It just will not have the same appeal as WCW.
Remember... there was another company that made it's living on trying
to do games based on Disney movies like Lion King, etc. I forget their name right now, but that's probably because of their "stellar" financial performance.
Tom C. |
