THQ: Nintendo success making kids’ market tougher

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.”