Lagging sales in both THQ's kids and WWE divisions have dramatically affected THQ's bottom line. Stale kids franchises dragged down the category 38 percent, while sales of WWE games have plummeted 25 percent.
Understandably, the company plans to refocus its efforts in the new fiscal year. The casual games market is an important growth sector for THQ, with sales of its Wii games doubling year over year. Wii software sales represented 17 percent of the company's total sales, a dramatic jump from 9 percent the year before. The kids division is also expected to be reinvigorated with THQ's upcoming Marvel Superhero Squad, coming to Wii, DS, PSP and PS2. THQ anticipates this kid-friendly Marvel mash-up game will become an annual franchise for the company. In addition, THQ will reveal three new casual, "mass appeal" titles at E3.