THQ Suffering From Shrinking Kids Games Market

THQ is one of the few developers who focus on kids games. Unfortunately for the company, those game are no longer that profitable.

"The kids' business, as you know, has been a huge focus of THQ for many years," THQ CEO Brian Farrell told the Wedbush Morgan conference attendants. "But there has been a trend away from licensed TV and movie games, and it's become much more competitive for all participants."

"Back when we took the Pixar license on several years ago, Pixar was the only CG animated film company, and now there are several... up to 10 or a dozen CG animated films each year," he said.

"So it's much more competitive - which means that the kids' pie is getting sliced in smaller pieces, which makes it less profitable."

THQ has the rights to publish just one more Disney/Pixar-based game before the end of 2011.

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