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Technology Stocks : THQ,Inc. (THQI)

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To: Jeff Bond who wrote (9288)1/12/1999 1:05:00 AM
From: Marc Newman  Read Replies (1) of 14266
 
Jeff, if Apple doesn't bundle the thing with the iMac then I don't think it matters much. Sales will increase, but no big deal. On the other hand, if every iMac has the Virtual Game Station and game companies start advertising in Mac magazines and on Mac websites, then I could see hit PSX games selling an extra 25,000-50,000 copies. Ie, a nice bonus. (Apple is on a run-rate of 3-4 million boxes for 1999.) In THQ's case, I'd think that Devil Dice and Rugrats would do very well on the Mac-side. Lots of families have Macs as the home computer.

Apparently there are a few frames dropped on some games, but in general it is very playable. Graphics are sometimes improved due to computer monitors having better resolution than televisions. One interesting thing is that an extra RAM allocation doesn't help, as PSX games are designed to only run on 2 RAM.

<<Is a PS game a better quality game than a native Mac game, are Mac specific games richer, or are they the same?>>

Um, not even close. Mac games are essentially the same as corresponding PC games. Just less buggy. <<gg>> No one would choose to play Tomb Raider on the PSX when one could play it on a Mac with Voodoo 2, for instance. But this program would be useful to fill in some gaps in the Mac gaming experience. For instance, there are essentially no sports games for the Mac, besides golf games. Needless to say, there are no wrestling games either.

Devil Dice just seems a natural.

<<Anyways, that does not matter that much, since we are assured of one very nice quarter no matter what.>>

The next three are just going to be amazing. Thunder should be the best-selling THQ game ever. I also really like THQ's stealth maneuvers with the WCW Nitro 64 game. Revenge is selling so well, THQ is keeping a low profile with Nitro. But one day the game will just show up on the coming soon lists, just like Nitro PC did.

Q2 will be gigantic thanks to Rugrats. WCW pct. will be low and reasonable. The stock should respond very favorably. Then Q3 shows that THQ can still grow revs despite no WCW contribution.

I also like how there are no new WWF games coming as competition for the remainder of THQ's WCW license. AKLM isn't scheduled to release anything until after our June 30 date. I also can't find any plans for a WWF PC game from AKLM, so a THQ WWF PC game for Christmas of 1999 should do very well.

Marc
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