Well, right now it's just unpredictable because we don't know how many SKU's we're talking, etc. But when one thinks of the cross-promotion, this should be a very profitable deal. And not at all priced into THQI, IMO. I would say that the AKLM's say that their Jeremy McGrath game did not sell all that well. So I'm not sure if extreme sports are top twenty material.
Good thoughts from Bloomberg today:
THQ Inc., a video-game software maker, plans to begin creating its own original brands with the acquisition of game developer Pacific Coast Power and Light Co., Chief Executive Brian Farrell said.
THQ, which primarily publishes games developed by outside programmers, has produced several popular titles tied to entertainment icons such as pro wrestling and cartoons. Now, the company hopes to bring some development in-house and create games based on unique characters and story lines. The first internally- developed games may revolve around the racing themes that Pacific Coast programmers have created in the past, Farrell said.
THQ agreed to buy closely held Pacific Coast Friday for about $16 million in stock and options. THQ also wants to use Pacific Coast's programming technology in several different games to lower development costs. It expects costs to rise with the advent of powerful new video-game console systems made by Sony Corp. and Nintendo Co.
''It's going to be very important to own the technology related to those platforms,'' Farrell told the Bloomberg Forum at the Electronic Entertainment Expo. ''Perhaps more importantly, the platform transition is a good time to establish owned content and brands.''
Both Nintendo and Sony expect to introduce their systems before the holiday season next year. THQ plans to unveil games for Sony's machine simultaneously with its introduction, including a wrestling game and a game based on an internally- developed plot, Farrell said. |
