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Technology Stocks : THQ,Inc. (THQI)
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To: Todd D. Wiener who wrote (9788)2/20/1999 11:10:00 PM
From: Dave Hanson  Read Replies (2) of 14266
 
Admittedly just conjecture, but I agree that it's more like $1 per unit. My guess is that THQ effectively just licenses the game, while the OEM's do the CD pressing and manual printing themselves (since they're doing this already for recovery disks, misc. manuals, etc.)

This way, THQ has no risk: they get 100% profits and exposure to a vast audience. For that, they could and should take a very small royalty. OEM's get a hot new title dirt cheap, and they can "manufacture" (i.e. roll and print) as many copies of the title as need be on a JIT basis.

Just MHO, of course. As you note, will be interesting to hear the CC address this.

I think this is a great move for THQ.

Thanks for sharing your notes from IR Todd.

Regards,

Dave
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