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Technology Stocks : THQ,Inc. (THQI)
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To: Sigmund who wrote (3988)3/12/1998 8:28:00 PM
From: Wildman262  Read Replies (2) of 14266
 
Many of the doomsayers continue to state that THQ will be out 39% of their revenues in 1999. So, THQ made a BIG mistake walking away from WCW. But, was it really a mistake? It's like the market has completely ignored the idea that THQ could develop other games with the 10million plus it could have cost them to retain WCW..... Hmmmm

My guess was that the deal was more expensive that 10million.. Sheesh..Tiger cost EA 10million 1 year before the first Tiger Golf ever hits retail !! WCW could have gone for more 15 million plus? Sounds crazy? Thq paid 1 million plus for
WCW the first time around for about 2-3 years. Yes, it was a steal. Let's say it was 3 years, so it cost THQ $350,000 per year on a title that at time was unproven. Thq turns WCW into a hit, Turner jacks up the price bigtime, (maybe wants a piece of THQ) Thq walks away.

THQ is confident that the newer titles will surpass what would have been spent on WCW. It is that simple in my opinion. WCW would have been great.....but even Rockie ended after 5 sequels...as did Rambo. (g) Don't get me wrong, I would rather have it, but THQ has proven to me their ability to analyze a risk/reward mix that is best for the long term growth of the company.

As for the stock price? Sure it stinks.today.....and it may stink for a few weeks or more. Yes a wheel fell off the wagon. But, THQ WILL replace it with 4-5 other less expensive wheels (double axel) and the wagon will keep going. (g) I continue to have a lot of confidence in THQ's management team.
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