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


To: AreWeThereYet who wrote (5927)6/11/1998 5:24:00 PM
From: Harry  Read Replies (2) | Respond to of 14266
 
THQ's Quest64 advertising...

Hey all,

This is from videogames.com (http://www.videogames.com).

Harry

----------

THQ Ships Quest 64
The title, developed by Japan's Imagineer Co. Ltd.,
has shipped. Q64 is the first N64 RPG. THQ will
support the launch with network TV and cable
buys; those buys include Nickelodeon, NBC, ABC,
Fox, MTV, USA, Cartoon Network, and the Warner
Bros. channel.



To: AreWeThereYet who wrote (5927)6/11/1998 5:54:00 PM
From: Todd D. Wiener  Read Replies (1) | Respond to of 14266
 
I'm not going to increase my 1999 estimates yet. My EPS estimate for 1999 has been $4, a 30+% increase from 1998. For the past several days, I've been working on a comprehensive equity research report on THQI. I plan on making it publicly available next week.

Does everyone realize the significance of having a 10-year license? I'm not referring to exclusivity or longevity, but the improving technology in the video game software. As I mentioned a week or two ago, THQI's future wrestling games (regardless of the license) could be developed by GameFX. Specifically, I mean a 128-bit wrestling game for the Sega Dreamcast. By the end of 1999, CD/DVD technology will enable several GB of data on each disc.

Imagine if THQI releases one of the first 10-15 titles for the Dreamcast: WWF Wrestling in 128-bit! Despite the higher development costs, the gross margins will be high, and the sales volume will be tremendous, assuming the platform is successful.

By 2004, there may be 256-bit video game consoles (although at that point, PCs will sell for similar price points and set-top boxes may integrate video game functions). In 5 or 6 years, the graphics and animation of video games could look very close to actual TV. So the security that THQI has gained with this long-term license is substantial, because they have rights for all platforms.

Todd