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

To: Todd D. Wiener who wrote (10126)	3/3/1999 8:33:00 AM
From: Kory	Read Replies (1) \| Respond to of 14266

Todd, Obviously, as I haven't read the WCW license agreement, this is speculation. But I don't think you can determine much about the 2nd quarter (or 1st for that matter) WCW revenues from the year-end inventory level. As you point out, any items "in production" seem to be allowed under the agreement. Assumedly this includes all finished goods and WIP. I also think that it probably includes items simply ordered to be pressed at a factory or Nintendo. The term "in production" could easily be defined as creative production, and not manufactured product. Therefore if THQ was essentially done with Nitro 64, and had simply placed the order to Nintendo to manufacture it, that may be sufficient to stay within the agreement, even though their inventory number would contain $0 of this product. I believe this is probably the case as it seems to be in the WCW's best interest to allow THQ to keep selling games up to the deadline. As long as they don't anger ERTS and breach that agreement, why wouldn't they want to keep receiving license fees from THQ as long as possible? And I don't think ERTS would push the issue that much, for fear of angering a major new license. Could be wrong, but I think THQ will find it pretty easy to sell as much WCW as possible up through June 1999. I still don't even know if there is a mandatory recall of the product at that date. Seems a bit strange to me that Wal-Mart would be required to go pull product off the shelf on that date. In any event, I assume that there will still be a fair amount of WCW revenue in Q2, unless THQ loads up the distributors at the end of Q1. Kory

To: Todd D. Wiener who wrote (10126)	3/3/1999 8:53:00 AM
From: JakeStraw	Read Replies (1) \| Respond to of 14266

THQ Set to Run the Table With 'Ultimate 8 Ball' The Ultimate Billiard Simulation Comes to PlayStation, PC CALABASAS, Calif.--(BUSINESS WIRE)--March 3, 1999--Game publisher THQ Inc. (Nasdaq/NM:THQI - news) Wednesday announced the upcoming release of the ultimate billiards simulation, ''Ultimate 8 Ball.'' Coming to the PlayStation game console and the PC, ''Ultimate 8 Ball'' will offer intense competition and one of the finest selections of billiards game play since the cue stick was invented. The game is scheduled for North American release in June 1999. Featuring 14 different pocket games from both the United States and the United Kingdom, a ''School of Pool'' mode with tutorials, rules, trick shots and practice, and five different modes of play, ''Ultimate 8 Ball'' will provide an ultra-realistic and unique, in-depth billiard experience. '''Ultimate 8 Ball' does an incredible job of simulating the actual game of billiards,'' said Michael Rubinelli, vice president of product development, THQ. ''Combining the variety of environments and a cutting-edge physics engine with the hidden opponents and tables, and multi-player options, fans will not only have a great time playing, but they'll also be able to improve their game.'' Billiards is the newest sport to join THQ's line of wrestling, bowling and fishing products. More than 42 million Americans play billiards at least once a year, with the game ranking second in frequent participants behind basketball. Developed by Mirage Technologies, ''Ultimate 8 Ball'' will include a full set of pocket games that range from U.S. and U.K. 8 Ball, 9, 10, 6 and 3 Ball, to Straight Pool, Rotation, Killer, Cut Throat and Speed Pool. In addition to the pocket games, ''Ultimate 8 Ball'' will give players the opportunity to learn the ins and outs of the game using a special ''school'' that will teach shots like spins, jumps and swerves using a ''learn by example'' methodology. THQ Inc. develops, publishes and distributes interactive entertainment software worldwide for a variety of hardware platforms including PC CD-ROM, and those manufactured by Nintendo and Sony. The THQ Web site is located at thq.com. The statements contained in this release that are not historical facts may be deemed to constitute forward-looking statements. Actual results may differ materially from those projected in such statements due to a number of risks and uncertainties, including, without limitation, demand and competition for the company's products, and other risks and uncertainties detailed in the company's filings with the Securities and Exchange Commission. ------------------------------------------------------------------------ Contact: THQ Inc., Calabasas Deborah Lake, 818/591-1310 (investor relations) or Linn Public Relations Bill Linn, 415/552-1183

To: Todd D. Wiener who wrote (10126)	3/3/1999 6:36:00 PM
From: JEFFREY S. FENDER	Read Replies (1) \| Respond to of 14266

<<<<< Now, what if most of the inventory was work in progress?>>>>>> Pleas explain this concept work in process? They either have a finished disk in a case or they don't have anything. There is no such thing as work in process as far as I know. If you know differently please elaborate Thanks

To: Todd D. Wiener who wrote (10126)	3/3/1999 11:05:00 PM
From: gofrank150	Respond to of 14266

Todd, good questions! I have many of the same. <<Therefore, if $15 million of the inventory was Thunder, there could be 1.5 million units shipped, ONLY IF THE INVENTORY CONSISTED SOLELY OF FINISHED PRODUCT>> I would need to relisted to the CC, but if I remember right, I was thinking Fred implied they were FG. <<If almost all of the $17 million in inventory was Thunder, then that should mean that THQ is not planning on shipping much WCW in Q2, and not much Q1 aside from Thunder. >> Agree. Since Gysi said they shipped it all out, my assumption was that we wouldn't have much in q2. Unless they somehow skirt the clause about wip inventory at year end. I was wondering what would happen if they sold out of Thunder - say this month. Would it be gone forever, or would they somehow be able to pull some tricks to get more made? <<If so, knowing that THQ had to have any 1999 WCW shipment in inventory or production (which I assume would be counted as inventory works in progress) on December 29, 1998, how can you expect 600,000 Nitros? And how about Q2 shipments of WCW? >> The 600,000 was totally a wild guess on my part - just based on the 1,500,000 number for Thunder and my gut feel for demand of Nitro vs Thunder. I assume you are asking if it was WIP, where are the $$$ - assuming most of the 17 million was Thunder. I dont know for sure. It would all depend on the stage of completion applied to the WIP for Nitro. My assumption (please correct me if I am wrong) is that as long as the game was on order from Nintendo as of 12/31/98, they were inside the limits of the licensing contract with Turner. I also assume that it costs them little or nothing to place the order and that as a purchased complete item from NOA, that until it ships from Nintendo, little cost hit the books. <<And based on my estimates for Q2, THQ doesn't need WCW.>> True - it seems like we keep getting more and more games for q2 in the past few days. Wonder if they are realizing they will sell most of the WCW stock in q1 and are pulling some games out as gap fillers for q2? Chris