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Technology Stocks : THQ,Inc. (THQI) -- Ignore unavailable to you. Want to Upgrade?

To: Emmo who wrote (13605)	3/5/2000 8:29:00 PM
From: Marc Newman	Respond to of 14266

Emmo, that's a great article. As for THQ's expenses, it looks that the advertising budget might have even been higher last year due to the release of Nitro 64 and perhaps more Rugrats ads. The campaign for Thunder and Smackdown are pretty similar. I wonder if one of the main differences between the two quarters (besides fewer Rugrats sales and no Nitro 64 of course) is simply the wholesale price of the PSX games. Thunder originally retailed for $50 and my estimate is that Smackdown is averaging about $41, maybe $42. There could be a $7 difference in wholesale price. I think expenses are higher due to salaries of new employees, but I'm not sure about that. I don't know if THQ capitalizes that. But maybe all the PCPL and Heavy Iron games will be more accretive than usual when released in Q4 due to some extra costs having been paid out early. In any case, THQ is still a good profitable company despite the current uncertainty over yearly growth rate. Hard to imagine there's much downside. Marc