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THQ: Nintendo success making kids’ market tougher

THQ: Nintendo success making kids’ market tougher

President and CEO of THQ Brian Farrell has pointed the finger at Nintendo’s successful first party software for making the kids’ video games market “extremely competitive”.

In a Q4 earnings call with investors, Farrell cited Nintendo’s software success as a reason why THQ’s “traditionally strong kids’ business did not meet expectations”.

However, Farrell said that THQ expected its kids’ portfolio to enjoy greater success in FY 2008-2009, as it was made up of stronger titles – and would face less competition from the cinema.

Farrell said:

“The kids’ market was extremely competitive during fiscal ’08. In fact, it was the most crowded market for video games for kids in recent memory.

“With a tough Pixar comparison to Cars [Ratatouille] and new competition from Nintendo’s first-party titles – as well as new music games – our traditionally strong kids’ business did not meet expectations.

“We believe our fiscal 2009 licensed kids’ line-up is much stronger this year and will face a less crowded family movie slate than last year. This quarter we will begin launching games based on Wally, the next Disney Pixar film, which has a video game friendly robot and outer space theme.”

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