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

To: Steve T who wrote (6303)	6/23/1998 5:53:00 PM
From: Todd D. Wiener	Read Replies (2) \| Respond to of 14266

Steve- According to my discussions with THQ, there is the possibility of technology licensing. But I'll defer to you, especially after you speak to Davis. Another company with excellent 3D technology for graphics is Cyberflix, makers of RedJack, Titanic, and other PC titles. RedJack is their favorite game yet, and I love it (based on my own previews). Their proprietary technology is called DreamFactory. I believe the guys from Cyberflix approached THQ last year to help them publish RedJack. The two companies have a good relationship, according to THQ. I would like to see THQ buy Cyberflix, and perhaps the remaining 75% of Inland Productions. This may happen if the stock price rises sufficiently in the near future. Acquiring both of these companies would capture all of the royalties from their games, as well as garner the software design and development expertise of both companies employees/principals. Combined with GameFX and Heliotrope, THQ would have one helluva internal development studio portfolio. It would also further THQ's goal of expanding the proprietary portfolio of titles, and the number of titles for the PC market. Through these acquisitions, THQ could boost operating margins by increasing the gross margins (shift to PC sales) and reducing royalties to developers (because the developers would be in-house). These decreased expenses would be offset partly by increased product development costs (salary for new development staff). Just an idea. Todd